Kraken Exchange & Bitcoin Trading Full Review 2020
Margin Trading - kraken.com
Margin Trading for Cryptocurrency Investors Explained ...
Margin trading basics – Kraken
Keep in mind before hating on Gnosis more
Keep in mind that the tokens in excess of 10% will be used to FUND projects on top of Gnosis. Augur and Gnosis want people to build companies on top of their platforms. Projects on Augur will have to raise an ICO or look for external capital. Projects on Gnosis will get funded by Gnosis. Giving Gnosis a supreme advantage. Also, keep in mind that 99% of the excess tokens won't be touched by the team for at least 12 months and the team won't sell their tokens. This effectively makes the marketcap ~$42 million based on available supply. As well, Gnosis will be launching their first killer app (the Twitter bot in Q4). Remind me in Q4 to check out this post again when people are dying to buy the available GNO.
**Edited: I uploaded my Kraken data to Cointracking, which only requested ledger data, and I believe that the ledger data only shows fees/gains/losses from margin trades. Cointracking is reporting these as items of ordinary income and lost coins, but I believe that these items belong on the 8949. As a result of only having the ledger data, I don't think there is enough information to calculate the cost basis of my margin trades; I only have the gains/losses/fees. How should I report this? Can I just group these items by day and report the gains as an AR with zero basis and losses as zero AR with basis of whatever the loss is? Maybe I'd attach a note and explain I don't have the data to calculate the basis of my margin trades, but the bottom dollar number is correct. . .
Ok, so today I had my position liquidated on Kraken, after chatting with customer support they informed me I had surpassed the 28 day funding limit on the position. I had traded margin Kraken a lot a year or two ago and never ran into a position that .I held this long. Im a bit shocked because I never remember seeing that anywhere on their website when I made my account in 2017, and They gave me no warning whatsoever. How does the community regard this practice? In the support menu the do explain this process, but since I have been trading on there for years and never encountered this issue, I don't know if it was always a policy, or if it was adopted later and snuck into the support page. I am obviously upset abut the loss but am curious if this is a standard for all US margin platforms, or if is otherwise nefarious. If the policy was slipped into effect after my account creation in 2017, I feel they should have notified customers, or at the very least provide an available funding metric and a time clock for funding for US residents. Please share your thoughts, ill be the first one to call myself an idiot for not looking at the policies more frequently, but it is still really fucked up.
How Leverage Can Help With Bitcoin’s Price Discovery
Article by Coindesk: Sebastian Sinclair Bitcoin (BTC) is like any other asset class in that it captures value through organic price discovery conducted via trading activity on global exchanges. Yet leverage and margin trading, in general, can help “turbo-charge” demand for an asset. They can also free up capital, thus increasing liquidity within a given market as traders look to use their capital elsewhere. It’s an investment strategy of using borrowed money for the use of various financial tools to increase the potential return of an investment. It’s also an efficient use of trading capital, valued by professionals because it allows them to trade large positions without committing 100 percent of their capital to a risky spot position. For example, a trader that wanted to buy a thousand tokens at $1 apiece would only require a $100 of trading capital, depending on the leverage used, thereby leaving the remaining $900 available for additional trades.
Why leverage matters for bitcoin
Often touted as the most liquid cryptocurrency asset available, BTC benefits from leverage and margin trading activity by allowing investors and traders to lock in a position while maintaining a portfolio of other cryptos. It also provides professionals and retail investors with additional tools to capture value in the crypto market. In effect, greater demand on the asset class vastly improves the potential for more accurate value capture through organic price discovery. Participating in a live panel discussion at Invest: ASIA in Singapore, Lennix Lai, financial market director at OKEx told Coindesk:
“If you can only buy or sell particular underlying tokens of bitcoin and you don’t have the capability to short, basically speculate in another direction, then the market would be a lot more volatile because it would be entirely driven by sentiment.”
“For example, you can view bitcoin as being much more volatile before CME Futures were introduced … so we should have more financial instruments like options to assist further in the price discovery process in relation to volatility,” he said. Greater access to capital means greater liquidity, without actually increasing the number of traders in a given market. It provides a means for increasing capital inflow without attracting any new money. And while the total market capitalization of the crypto market has been on the slide alongside declining total volume, the pressures from a bear market can be offset through leverage and margin trading.
What’s the risk?
Of course, the rewards don’t come without inherent risks, as a loss can lead to the liquidation of a trader’s capital and force spot prices lower. Such an event recently took place in BTC’s futures market on Sept. 24 triggering a “long squeeze“. If the cryptocurrency underlying a trade moves in the opposite direction to what was expected, leverage can greatly amplify the potential losses. To manage the risk associated, traders usually implement a strict trading style that includes the use of stop orders and limit orders designed to curb potential losses. Also speaking on the panel in Singapore, Sunny Ray, head of global business development at the Kraken crypto exchange, explained how exchanges protect themselves from that risk:
“If there’s a lot of volatility in the market, if the value of the asset drops below 20 or 30 percent, there is something called a margin call that takes place where a company will actually liquidate the customer’s assets to cover some of those losses.”
There are currently eight major exchanges that offer the ability to leverage crypto, with several others offering margin trading accounts such as Kraken, Binance and Deribitm, while Bakkt’s release of its futures product on Sept. 23 adds to the opportunities for more authentic price discoveries. Disclosure:The author holds no cryptocurrency at the time of writing. Bitcoin image via Shutterstock
Alright, there's been a lot of complaints and people's two cents regarding the new update, but I figured I might help out and give some helpful insight if it's worth anything. The new update's matchmaking: "Improved Faction War Matchmaking" "...produce more meaningful and informed matchups". Is it more meaningful? Hell no. Is it informed? That's up to you to figure out by yourself. What I learned from that itty-bitty of information is that: no, the "fairness" hasn't been fixed entirely, but there have been improvements. For example, you don't nearly get as much FX60 + 2 level 10s when you have a balanced team. But wait, literally, that's all that has changed. Is it fixed? Not really. If you field a team of 3 F0 50s, you'll most likely be matched up against some F2-F4 50s, which makes absolutely no sense. However, if you take a look at equipment, you'll realize they play a major factor in the new matchmaking, similar to how they boost quest success %. What I mean is, if you go about a balanced team without equipment, that's most likely going to have a fair matchup. If you have decent gear equipped, you'll get bare opponents that have better stats, or another balanced team with similar equipment. I don't fully agree with this, as a bare F4 50 is far better than a simple F0 50 with decent gear. Is it better than coming across the douchebag with a FX 60 Jade and 2 level 1s? Yes, but marginally. Why? "New AI" As daunting as that sounds, the new AI actually gives matches a sense of challenge. Before, with decent team pairings or one great solo card, you could tap away and grind through FW or any ladder for that matter. Now, you actually have to focus. That's not so bad for players who have gotten bored with simply tapping. But, that's now a new issue for the older players. We have been tapping away blindly for months, and now we have to "block". That's not so bad as re-learning the game fundamentals to become a better player if this game really was PVP. That being said, it's not so simple as re-learning some tricks. It's far more annoying. The new AI literally is optimized to attack before your combos, and their SPs have a higher priority of activating than yours. No matter what you do, you can't play against an AI that attacks at the millisecond between your chains or the gambit when you proc your SP, but they somehow get theirs off first. Now, this is where I am talking about a new meta. Previously, if "meta" held any meaning in MKMobile, would be OP cards and that's about it. Maybe smarter players will concoct good team synergies, but that's pretty rare. Now, the meta is shifting to beating down the AI in a different way. What I mean by that is, before, a decent solo kard gets you pretty damn far, but not anymore. Even if you have a card that has a far higher level or fusion level, it won't be enough to curb stomp that FX 60 Injustice Scorpion. Now, you really need a kard that focuses on a few things:
Tag-in effects such as stun
Block-breaking basics (stun, or just block break)
Higher combo-ender chance, or a combo that "pushes" the opponent away.
Let me explain why I came to these conclusions:
As soon as you tag in, the AI is relentless. There's a window of lag between your tag-in and the first basic you get off. And don't even think about pulling off an SP the second you land either. Your odds are worse than a coin flip to get that off before they get their's off
Block breaking gear has always been amazing, and it's even more valuable now. AIs were notorious for blocking nearly all the damn time, but now, there's almost little to no window to get off a successful SP without block breaking gear or them being stunned.
If there's no block-breaking gear available for you, or you simply can't wait for the 20% chance of unblockable basics, a kard with block-breaking SPs is great. Get those SPs off ASAP you can. Don't hesitate in this current meta.
With how many power-drain kards there are, it is unlikely you'll build up successfully to a SP2, let alone a Fatal/X-ray. On the other hand, you will probably be chained to oblivion before you get there either. Therefore, some kard with a high-dmg SP1 will be your bread and butter.
This is one of the frustrating things I came across. Kards that end their combo, or their combo-ender without "pushing" away the opponent a little, are completely open to counters at the end of their combos. Not to mention, they were probably blocking the whole time, so this "combo trade" is definitely NOT in your favor.
Alright, and I know I'm going to get flak for this, but let me explain some kards I found...interestingly powerful or devastatingly disappointing. The Good:
Klassic Kano: Block breaking basics, and block-breaking SP1 + SP2? Covers most of the things I outlined above. Definitely weak stats, but getting off your attacks properly beats having an extra 5K in attack that you can't even use. And trust me, even if you have a tanky kard, you're still going to be blown apart easily by a weaker kard.
Kenshi Prime / EG Kenshi: Great stats, great passives, and nuke SP1 + power drain. Versatility, and still one of the best kards in the game
Hellspawn Scorpion (+Shirai Ryu gear): great stats, good basics, amazing passive. But, basics lack the "push" i was talking about, so it leaves him open to a counter, but because of his SP1 spear being 3 attacks, you can have a chance to block-break on each of the 3 times.
Aftershock Tremor: Stuns on tagin, great SP2 damage, and "pushes" away opponents on combos. "Tremor is incredibly useful in Jade's challenge. His passive of granting unlockable to team mates against Netherrealm works amazingly. There are a lot of Netherrealm opponents in those fights... " from u/PistaUnguru !
MK11 Scorpion: Fast, and really fast. Lethality bonus from passive certainly helps when you finally land a hit on the opponent. 90% or higher on SP1 shuts their SPs down, and gives you a freaking chance. Paired with MK11 Sub Zero, and you can have a "redemption round".
Triborg team: Power drains for days, tag in effects, good stats. Freaking stellar.
Kombat Cup Sonya Blade: Tag out that mofo and power drain his ass when you're getting combo'd to hell.
Klassic Mileena: One combo that doesn't "move", so you can't walk your combo into the enemy. The other combo pushes so damn far, it resets everything. SP1s are still great, but...razor sais next to useless if you can't build up to SP2.
Kraken Reptile: Getting hit wasn't a great idea, and it's even less so now. Passive is next to...useless now.
Scourge Baraka: His attacks felt freaking slow before, and it's even worse now. Say goodbye to the passive-procing combo.
These are just some insights I found playing an entire day into this game. Several hours of completing those godforsaken Elder God challenges, and I'm sure I've gotten a hang of it. It's still hard to adjust to losing maybe 1 out of 5 matches in FW, but I'm sure I'll get the hang of it. Before we had free reign to synergize kards based on passives, but now we're limited to how much they can actually do, aside from just "sounding good" on paper. And, for those dickwads who still think they're able to get away with 1 or 2 strong kards in their team and 1 shitty kard, you really can't. On another note, I'm more or less neutral about this patch. I don't love or hate the AI, but it's certainly a curveball. On the bright side, FW rubies have become easier to obtain, and we did get a new level for challenges. Also, new background and improved graphics are always appreciated. Since Kabal hasn't actually arrived, I'm not going to speculate whether he's a great addition or not. Overall, the patch wasn't nearly as disappointing as the last patch, and I do feel the game devs are actually trying to improve the game, but probably just not in the right direction...yet? *fingers crossed*
Five days ago Kraken has blocked my ability to trade and withdrawal my money. I was a VIP Customer. I wrote them many times and never got any response exept empty words. As a result of your actions I get a margin call and loose about 26.000€. I put here my questions:
Why did you block my account?
Why nobody doesnt answer me? I get only empty words about "escalations of your ticket".
why did you give me my VIP status? If you do so with VIPs, how do you do it with other users?
When can I get my money back? I still have about 20.000€ on my account.
A reasonable explanation of how Bitfinex and USDT work.
So I have been thinking about the Bitfinex/USDT thing quite a bit lately, and you can see from my post history that I am obviously not a fan of the current theories. I trade on BFX because it is just better than all the others. UI, margin trading, execution engine..all top of the game. So I have a vested interest in proving to myself that I am safe there. My core problem with the other theories is why would bfx screw with their massive money machine? They make millions in fees every day. It would be beyond stupid to fuck with that.
BFX trades in USD. They do not have the ability to receive USD from US residents anymore. It seems like it is actually pretty hard for anyone to send them USD anymore.
If there is no input of USD, wouldn't they run out of USD to even pay themselves the fees they charge after a while?
How do they increase the "size" of their market without USD input?
The answer is that they do not need USD input
BFX USD markets are effectively "contract" markets like Bitmex.
Your USD on BFX is a "token" you purchased with your crypto that is effectively pegged to USD by the market. It is a contract that gives you buying power on their market.
So how do they pay their fees? How do they fund real USD withdrawals and USDT?
The answer is purchasing crypto on BFX with "fake USD", "contract usd" from now on. And to a lesser effect, simple arbitrage.
Firstly, I think BFX does normal arbitrage extensively. They use their power to instantly process withdrawals of any size to profit from price differences between exchanges. I have no problem with this. It is their platform, they can do what they want with their funds.
But more interesting is how they can LEGITIMATELY use "contract USD" to resolve the fees and USD withdrawals problem.
The first case is simple. They have a huge balance of "USD" fees payed to them. They can use this balance to buy crypto and send it to GDAX/Gemini/Kraken and take their fees. BFX users "owe" this ability to them. We owe them those fees. The contract is not violated. They are using the contracts we payed to them just as any other user would.
So, how do they handle USD/USDT withdrawals? Its actually pretty simple and it is perfectly legit and "balances" the market.
Whenever a USD/USDT withdrawal request comes in, they use the "USD contracts" in your account to buy an equivalent amount crypto, send it to GDAX/Gemini/Kraken and sell it. They now have the USD to fund the withdrawal.
The net effect is zero! BFX simply did the work of buying crypto on BFX and selling it for USD elsewhere for you The "USD contracts" on BFX are still in balance. They reduced the supply of crypto on BFX to fund a withdrawal of USD
Even if they don't sell the "contract usd" purchased crypto for the same price they bought it at, they make up for it in fees they earn elsewhere.
To be clear, they probably don't do this for every single USD withdrawal. That would be silly. They do it in large chunks.
side effect: This could explain, to me at least, the huge BTC purchases when BFX gets equally huge USDT withdrawals
TLDR: I just explained how BFX could legitimately work and never run out of money even without new USD inputs. I even explain legit uses of "fake USD" that don't screw anyone over and are sustainable.
Help me understand a leveraged long position on Kraken
I want to use BTC as my collateral to open a leveraged long position on BTC. I want to put myself in a position where it is very unlikely that I lose my collateral. Obviously using leverage on a volatile asset increases volatility. If I have .1 BTC on Kraken, and I want to use 3x leverage. What would be a safe amount to buy to avoid a margin call if the price drops by 30%? To explain further. If I have .1 BTC on Kraken, and I use 3:1 Leverage to buy .09 BTC, am I only "risking" .03 of my .1 BTC on the exchange? Does this allow me a significant larger margin for error than if I were to buy .15 BTC with 3:1 leverage "risking" .05 of my BTC? How can I calculate how much of a percentage of drop in the price would = the 80% margin call rate? I've read through Kraken's website and can't figure it out. There is never a listed liquidation price. Is this method more advantageous or less advantageous than having USD in my kraken account as collateral? I'm currently avoiding fee's in my calculation, however I have checked out the git-hub fee and profit calculator. How much of an advantage am I gaining by making this leveraged trade? Is the first example of "risking" .03 BTC to buy .09 worth on margin the same as buying and hodling .09 would be (ignore fee's just for this example). I'm trying to find a way to leverage my bitcoin to make more bitcoin, but I'd really like to understand the risks first. I am intentionally choosing 3x leverage instead of 5x so that I am less sensitive to price movements in the opposite direction.
I'll preface this first off as usual with admonishment towards people who dislike derivatives. Derivatives are not inherently bad, they are in fact necessary, to think otherwise is financial ignorance. Comingling, rehypothecation, and accounting fraud are bad, and it can be prevented with the blockchain. Don't push bad investing and trading skills onto a market that needs infrastructure. The big issue is that there will be continued abuses by states and governments attempting to censor and commit fraud and otherwise political and financial repression and unequal laws against the poor by centralizing the derivative market. It is how predatory finance capitalism in America is largely able to control people (the world). Because it is centralized. Next you have platforms like Kraken that do offer some margin capabilities, but you have extreme counter party risk. Kraken can take your money based off of any stupid pretense, and you are trading against them instead of peer to peer like bitmex. You don't own your keys. The direction that layer 2 solutions are going in, combined with federated side chains and innovations on top of binance's new chain such as with Thorchain are a much more sensible outcome in the long run. I'll try to explain a few of these technologies A) Thorchain is probably the most promising since it rewards liquidity nodes on the network and plans to integrate multiple chains and lightning network while using binance chain to jump start the initial dex offering. b) Tradelayer is a layer 2 solution from the omni layer developer that can be adapted to meet regulations and KYC if absolutely necessary, but allows for non KYC liquidity nodes, and being layer 2 means its definitely proposed to interact with lightning network. It functions similarly to lightning, performing the computation needed for margining and settlement similarly to the many exchanges offchain with lightning. c) RSK bitcoin smart contracts which will basically enhance anything operating a DEX with liquidity nodes and the need for complex smart contracts. d) Virtual machines with Ren VM that can process smart contracts and link together liquidity provider Those are just a few. But with Ren and Liquid swap, they are still largely proprietary and deliberately facilitating corporate clients. This is what bitcoin needs to move away from. We need open source solutions that will perform liquid swaps functions for the masses, for retail.
Taking a huge risk while young with no kids. If it fails, FIRE target through traditional work in 6-8 years. If it works, FIRE before 30. Anyone else with a similar story, like starting a business or something?
Hey ladies and gents, they say goals are best acomplished if you tell others, so here is my story, and my plan. This is going to be a wildly unpopular opinion, but rest assured I researched my decisions carefully, have the traditional FIRE plan in place should my gamble fail, and it will not impact any children. The FIRE plan is pretty general, so I'll spare you the details. Ill be saving my usual 60% of each paycheck, and I'll keep enjoying inexpensive hobbies, like mountain biking, hiking, and camping. The question is, how to invest the savings for the best return? The method I decided on will seem very controvertial, so let me be clear, I know it may not work. Actually, it likely will not work the way I plan out. But the possible benefits are an extra 10 years of life without waking up to an alarm clock. Background I am young, as in 25. I am a family medicine intern. My wife is 24, a resident optometrist. We both grew up almost poor. Like, "always had a roof, but in a cramped house; always got a few christmas presents, but had parents that could barely get to the next paycheck, and sometimes racked up credit card debt to do so" kind of poor. We also graduated from high school into the teeth of the Great Recession. Between that and our combined 15 years of college/professional school, we are experts at surviving off nothing and delaying purchases until we absolutely need them. We do not want kids, so we do not have to be as financially secure as a normal family. We are doing well now, with combined incomes of $5000 and $2000 per month for myself and my wife, respectively. This is more money flowing in than we have ever had. And we are so frugal, we usually only spend 30-40% of each paycheck. *Plus, I was a vandweller for a while, so I know have a Plan C as well* So, since we are so young, and yet toughened, we can take risks now and still have a decent length working life to make up for the likely failure of those risks. However, should the risk pay off, we could possibly FatFIRE within 1-2 years. I'd say the chance of that success is... maybe 1 in 3. It was good enough for Sean Connery and the Red October. And to have some time in our 20s back from the hellhole that is professional education... oh my god so worth the risk. So, in the hopes that people will recognize we did not make this decision lightly, and we are simply trying to go out of the box, even the normal FIRE box, to attain freedom. Here is our story, and here is our plan. Learning how to invest Back in 2016, I had read some of the MMM blogs, and a few thousand dollars saved up. I was looking for anything that had decent returns, and a friend showed me how the Dow had tanked on news about China, and how he wished he had cash when the price was lower. At the time, I questioned the wisdom of buying when the market was going down. He looked at me, smiled, and told me it was just on sale. So I got a Wealthfront account and put a few hundred in at 90% stocks. The market recovered within months and I had a pretty good return. I then took some funds out. I tried timing things using the "FeaGreed Index" and Warren Buffets "be greedy when others are fearful" advice. I wasn't a day trader, more of a week trader. Then the stock market went down a little, and I bought more. I was just super lucky, but I thought I had a good stomach for risk at that point. Finding... (Dare I say it...) cryptocurrencies Here I may lose some of you, if you hate the idea of cryptocurrencys, and I respect your opinion. They are almost all speculation at this point, so I don't blame you. Anyway, I went looking for other, more volatile markets to apply Buffets advice after stocks flattened out in 2016. My sister's boyfriend told me he played with cryptocurrencies. So, I took some money off Wealthfront and I dabbled a bit on Gemini with Bitcoin ($600 at the time) and Ethereum ($12 at the time). I did my best to sell high, and buy in when FUD went around. I had put in maybe 1/2 of all my savings at that point. In total, my savings was only $15k then, but that was literally my life savings. Most was in Ethereum since it was cheaper. I started researching Bitcoin and Ethereum, and I liked Eth better. Naturally, Ethereum took a 30% dump to $9, and I realized that "volatile" meant down as well as up. Feeling a little stung, I pulled most of my remaining funds from Ethereum to even out my stock gains to avoid capital gains tax headaches (since I had no idea how any of that worked back then either.) Equally naturally, Ethereum then went off the rails to $40 before I could get my cash back in. The FOMO was strong, and I'm still kicking myself for missing that huge first leap. Luckily, it went from $40 to $400 in the span of a year. I had gone from $15k to $150k. I was in vapor lock for most of 2017 over this. I had never built up so much, so fast, and especially as it went higher in Autumn. At that point, I decided to pull from Ethereum and diversify in the cryptos, thinking the other shoe must be about to drop. XRP and the New Years 2018 Ripple Pump My sister's boyfriend again gave me some advice. He casually mentioned Ripple might be picked up by some big companies. My first thought was, "What the heck is a Ripple?" So I did some digging, and managed to get on the Kraken exchange, and glitched my way to a few hundred thousand XRP, while saving some of my precious Ethereum. Then XRP had that massive speculative pump, and I suddenly had over a 7-figure net worth within weeks. I was giddy. Then the market slumped. No big deal, I told myself. Then XRP took an 80% dump. *80. FREAKING. PERCENT.* I lost over $800,000 on paper from the high. I consoled myself on still having a mid 6-figure net worth, even to this day, but that didn't help much. As to why I did not withdraw at the peak, it was because I was simply astonished, a bit greedy, and I had no idea how such massive capital gains would impact my taxes, since they would be short term gains. At the time, I remember deciding not to decide and just roll with it. I knew I was young enough to deal with the volatility. So Im still holding on, even as the cryptocurrency market stumbles along. The Gamble Thank you for reading along this far. Before going any further, allow me to clarify that I don't want to sound like a gambler who can make his losses back with "just one more good hand..." which this will certainly sound like. My calculated risk is this: We will pour every extra cent that we can into XRP until we are 30 or have $6-8 million, whichever comes first. We would never do any leverage trades, as buying on margin is as stupid as essentially burning money in such volatile markets. If XRP has not taken off by the time we are 30, we will re-evaluate it against other cryptos with use-cases or stocks. Meanwhile, we will remain as frugal as we have always been, and continue to save at least 60% of each paycheck. The idea is this: plenty of people discover the FIRE movement in their 30s, after having terrible financial habits and no savings. If those people can FIRE in a few years, we would be able to do so as well if the Crypto market collapses. Its been around since 2009, so I bet it will be around at least another decade. The reasoning There is a finance quote that goes something like, "diversification protects, concentration grows," and right now we need our funds to grow, quickly, to reach FIRE. I have researched Bitcoin, Bitcoin Cash, Ethereum, and XRP. I chose XRP because it serves a very useful purpose already. Ethereum does as well, but currently mostly in theory. I agree with MMM on Bitcoin, in that it is a "greater fool" game. Bitcoin is also the first. So was MySpace. Anyway, XRP could easily become highly prized by banks for global money transfers, and in providing an actual service, behaves more as a "natural resource" than a security. And it is wise to buy natural resources before the demand grows for it. Imagine buying land in West Texas before the automobile was invented. Also, while I hate to depend on speculation, rampant speculation made me a momentary-millionaire on paper over the course of weeks earlier this year. Even if having a good use-case isn't enough, I bet the speculators will return to the cryptosphere within the next year because it could be very useful. Call that my "Hail-Mary." Discussion on Ripple and XRP, and why most people hate it. Skip if you don't want the technical talk So there are currently a lot of risks. XRP could be ruled a security of the Ripple Company, and it would not be listed on certain exchanges. XRP could be abandoned by Ripple. XRP could grow more slowly than Ethereum, Bitcoin, Bitcoin Cash, or the myriad of other cryptocurrencies like EOS, Litecoin, or Cardano. Additionally, XRP uses a Ledger protocol, which is different from the Proof of Work "mining" required for Bitcoin or Ethereum. So it may technically not actually be a real cryptocurrency in the traditional sense. This makes it understandable why so many people do not like it, since they don't understand it compared to what they're used to. That doesn't mean it can't have value. I have an answer to those concerns listed above. Ripple is doing its best to conform to SEC rules, and wants to be regulated as a currency. XRP likely won't be ruled a security, even though Ripple is selling the technology to utilize them. Currently XRP and its ledger system operate independently from Ripple, and can scale to demand, using tiny fees taken from each transaction. As far as growth, XRP does tend to lag, however, last time Bitcoin was $6k, XRP was $0.20. Now Bitcoin is $6k, and XRP is $0.45. I'll take 100% growth any day. And with some nudging from the Ripple Company, I think XRP is most likely to increase in value, and stay increased, where something else more popular may get pumped faster, then quickly dumped. That happened to XRP already, so I like to think it "got it out of it's system." To digress a moment on the security/currency/natural resource thing, imagine XRP as a lump of iron. Now imagine you're in the bronze age. Ripple found and mined the iron, and had a lot of it. It was found to be valuable, so Ripple had to carefully manage how it interacts with the Iron supply. Now the lumps are being released by an escrow, so Ripple doesn't control such a large suppy any more. (Ripple is also decentralizing their control of the XRP ledger, with more 3rd party nodes coming online.) So, these lumps of iron are sitting there, and Ripple had an idea. Rather than use horses to carry sacks of gold, they could build a rail system out of the iron. Ripple would control the rail system. The iron could be made into mine carts. So, Ripple doesn't control the carts, just the rails, and so doesn't have to have the carts regulated as portions of the company. Kingdoms can easily transfer their gold to other kingdoms on the rails in the carts that they own. Buy the iron, and you can move value with it. That inherently gives value to the iron, since there is a finite supply. The cool thing is though, what else can iron be used for besides carts? I don't know, but someone like Jeff Bezos might. Historical Comparison Jeff Bezos came up with a book sales program. He focused it, got really good at it, and customers loved it. It became super popular, then it branched out and is involved in nearly everything. Anyone who invested in early Amazon is extremely wealthy. Ripple the Company is getting really good at one thing, global payments. And they may be decentralizing, but Ripple can still nudge XRPs future. In the future, Ripple will certainly find other uses for their programs and for the global XRP supply. For example, imagine if it became the standard Xbox Live or PS4 Online token. Good golly miss molly, everyone and their grandmother would be trying to buy them. So, with so many unknowns, XRP is unpopular now, and thus cheap. But IF it is ruled not a security, and IF it is used in global remittance markets, and IF the Ripple developers don't get stolen away by other blockchain teams, and IF another coin doesn't come out and do XRPs job better... then this might be a very dirty, balled up, golden ticket. We shall see. If you have questions, please comment, and I will try to better explain what I have found in my research. Recap So, being young and able to stomach some epic risks, (really, does the stock market count as risky if everyone intends to be able to have a 4% SWR after inflation?) I am going to put all my eggs in one basket. My life savings in XRP. At least til Im 30. If the gamble fails, I work 8 years as a frugal physician and FIRE before Im 40. If XRP (and a few Eth for good luck) go crazy, I may FIRE before 30. That extra 10 years is, like Tom Hanks says in Joe vs The Volcano, "gold in my hand." Since there are a lot of ways to get to FIRE, please let me know if anyone else is trying the "eggs in one basket, concentrate wealth to grow" strategy. Or if you took a similarly huge risk that worked out, what is your story? ***I would love to answer any questions, but please also do your own research, and only invest what you can afford to lose. We have income, so we can afford to lose a good chunk of our life savings. We watched our parents survive that in 2009.
Hey Everyone! So I can't verify every detail of what I am posting here, but I wanted to be sure that I would make a post as a fair warning to all that you should do some further research into exchanges and where they get their money from. Especially the ones that use Tether (aka USDT) considering that Kraken, Bittrex, Poloniex, and Bitfinex use it for margin trading and other ways of raising capital. As far as I can tell this has got Mt. Gox 2.0 written all over it and is only a matter time before people start cashing out and realizing exchanges will not be able to pay out. This will be especially concerning once new money stops flowing in and the markets start stabilizing. To explain what is happening, exchanges are using Tether coins (aka USDT) under the impression that they are backed 1 to 1 by actual USD. Since there’s $1.3 billion of tether circulating, there should be $1.3 billion parked in bank accounts somewhere. However, there are many reasons to believe these bank accounts aren't holding the cash that they should be. Here are a couple reasons:
Tether’s website makes a claim that’s unusual among cryptocurrencies: “every tether is always backed 1-to-1 by traditional currency held in our reserves.” The site also says each tether can be redeemed for $1. But its terms of service say: “There is no contractual right or other right or legal claim against us to redeem or exchange your tethers for money. We do not guarantee any right of redemption or exchange of tethers by us for money.”
On Dec. 2, Bitfinex released a quarterly report announcing it would no longer serve U.S. customers because it’s too expensive to do business with them. This followed Wells Fargo & Co.’s decision earlier in the year to end its role as a correspondent bank through which customers in the U.S. could send money to Bitfinex and Tether’s banks in Taiwan. Bitfinex and Tether filed suit against Wells Fargo, but later withdrew the case.
Neither Tether nor Bitfinex disclose on their websites or in any public documents where they’re located or who’s in charge
Long story short, it is looking like tether is going to be the second coming of Mt. Gox (1st market crash). They keep printing fake money and pump it into the market allowing for bitcoin prices to skyrocket. The people that are going to get screwed the most are the ones who bought bitcoin at 6K+ when Wells Fargo ended its ties with tether forcing it to take its suspicious activities else where. Coincidentally if you look at market prices, this has also led to massive price rises in the market. Since Dec 11th alone, over 400 million tether has been released into the market without the market cap of tether ever changing. I hate fud but this seems very different. End result? There is an external audit scheduled for January 2nd for tether. Who knows what will happen. In many ways the market is behaving similar to the stock market in 2007 when certain people saw the housing bubble but had to wait for the general public to realize it for the bubble to burst. Personally, I have cashed out for me and my investors. Not because there isn't money to be made but because ultimately I could be taking money from someone who is excited about investing into the blockchain technology and is clueless about financial markets. I love reading the stories of people who have been able to pull themselves out of financial debt thanks to bitcoin, but unfortunately I believe there will also be lots of stories of people losing everything they have once the truth about tether surfaces. Please be careful.
Hello! My name is Kristina Semenova, I am the Head of Investors Relation Department at Platinum, the world’s number one business facilitator. Our team knows how to start ICO/STO in 2019! Why are we so sure? Well, our experience speaks for itself: Platinum.fund But what is the difference between ico and sto? What is the cornerstone of ICO marketing strategy? You will know this after finishing the UBAI courses! Here’s just a quick preview of our Short Course lesson. Real World Examples Multinational accounting firm Ernst and Young found that $400 million of the $3.7 billion USD raised from ICOs (as of January 22, 2018) had been stolen. That is, up to 10% of all ICO funding is virtually being stolen from investors. Though ICO scams are the most common method of theft in the crypto world, some projects will actually operate for a period of time before disappearing with the money. Like in a Ponzi scheme, an exit scam may be planned for later, sometime after a manipulated pump; or some other time the team believes is most opportune to take the money and run. Giza: Giza marketed itself as a platform within which different cryptocurrencies could be stored securely. But after raising $2.4 million in one month, the team deleted the website and stopped replying to emails. Investors were duped by a very convincing whitepaper, and actors had been hired to appear in photographs promoting the project. No investor funds have ever been recovered. Centra: The SEC put an end to fundraising for the Centra ICO and charged the founders Robert Farkas and Sohrab Sharma with orchestrating a fraudulent ICO after they raised $32 million USD. They were promoting the ability to develop financial products backed by VISA and Mastercard, though it was later found that neither partnership was real. One of the major red flags in the Centra project was the use of celebrity endorsements for publicity, reportedly paying champion boxer Floyd Mayweather a significant sum to promote their project. Who wants to leave their Blockchain investment decisions up to Floyd Mayweather, regardless of his unbelievable skill as a boxer and regardless of his own financial success? He should still not influence where you invest your money! Ponzi Schemes: Bitconnect: This is the most infamous Ponzi scheme in the history of cryptocurrency, and certainly the most damaging. Bitconnect was a Bitcoin-based project that rose to an all-time high of $463 per token on the back of a fictitious trading bot. The Bitconnect scam operated by paying dividends to users, proportional to the number of tokens they held and the number of referrals they made. The BCC tokens were exchanged for the users’ Bitcoin, and the highly sophisticated and wildly successful trading bot would trade BTC for them and distribute profits as dividends. The value of the dividends offered was approximately 1% of the initial investment per day. In other words, that is approximately 3,780% per year in cumulative gain! The referral system was capitalized upon most heavily by many of the biggest crypto YouTube channels, including CryptoNick and Trevon James, both of whom are now under investigation by the Federal Bureau of Investigation. Shortly after the Bitconnect Token reached its all-time high, they received cease and desist orders from the security regulators of Texas and North Carolina, which caused the owners of the Bitconnect exchange to shut down operations, and the price to plummet. Davorcoin: Davorcoin was a lending platform very similar to Bitconnect. And Davorcoin was farcically promoted by the same Trevon James crypto Youtuber who promoted Bitconnect, and is currently under investigation by the FBI for promoting Ponzi schemes. The Texas State Securities Board, in likening Davor to Bitconnect, stated that “DavorCoin is telling investors they can earn lucrative profits by investing in a lending program based on a new cryptocurrency known as davorcoin. Investors allegedly purchase davorcoin and then lend it to DavorCoin”. Davorcoin promptly plunged from an all-time high of $180 to very close to zero after a cease and desist order was made against them on the 2nd of February 2018. Useless Ethereum Token: Despite brazenly stating in the name of the project that the token has no use, the UET managed to raise $340,000 in its crowdsale, and saw a significant pump of over 300% on the HitBTC exchange in February of 2018. The scam was an obvious case of pump and dump, with the total trading volume for UET crashing back down to as low as $3 per day, after reaching as high as $350,000 per day during the pump. It is currently an unfortunate consequence of the decentralized nature of cryptocurrency, but there is a distinct lack of recourse for scammed investors. It is wise to become as well-acquainted with the various indicators of good and bad ICOs as you possibly can. In weighing the factors that will allow you to avoid expensive mistakes, ask yourself in whose favor are the terms of the ICO slanted, yours or the teams? To what extent are you actually likely to profit from this investment? Cryptocurrency is inherently a grey area, whether you are investing in it or not. Investing is another inherently grey area, no matter what the area or object of investing might be. Laws and regulations are not always able to keep up. Trying to define and prove what was or was not a scam is not likely to be as simple as the scammed investor would want it to be. A project can be set up in certain ways to avoid being technically classified or provable as a scam, but the unprepared investor can still be burnt or scammed just as badly. Now we look at more individual indicators that can help you form a valid impression whether or not an ICO or even a fully-fledged exchange-listed coin is a scam or a bona fide investment opportunity. Common Signposts Contrasting Scam & Legitimate Projects Presale Bonus/Token Release If the ICO allots massive bonuses to team members, you may leave yourself open to getting dumped on by presale investors if you buy when the project tokens are listed on an exchange. Likewise, if the project has a short lock-up period for developers and founders, you run the risk of them selling as soon as the token is listed on a major exchange. The token release schedule for the founders of a worthwhile project should show long-term team commitment to that project. The Jibrel Network team tokens will be locked up for 5 years before release, and they had no early investor bonus in the main sale. Both of these factors instilled confidence in the JNT ICO investors, and the tokens were sold out weeks before the ICO was due to end. No Presale lock up If Presale investor tokens are not locked up at all for any period after listing, that could easily be a set up for an exit scam after the initial listing. No presale lockup for early investor tokens is a crystal clear warning, the project may be fatally rigged toward those in the inner circle, with little commitment to the long term health or success of that project. Unsolicited Offers or Unasked for Additions to Groups Characters running scam projects will often add you to Telegram groups out of the blue or send you unsolicited emails with information about their project. Telegram is the most widely used messaging app in the cryptocurrency community and you should familiarize yourself with it to keep yourself in the loop for specific projects in which you invest as well as all kinds of other relevant crypto info. You can adjust the settings on the Telegram app to disallow anonymous additions to cryptocurrency projects if you find yourself bombarded with offers by scammers. Reputable projects at the ICO stage will spread by word of mouth, or by eloquent and meaningful articles posted on their Medium page. A project with serious potential does not need to actively seek participants for their ICO like that. They will often be able to fill their ICO hard cap in a matter of hours, or even just minutes! Anonymous Team Alarm bells, again, immediately, if the project has minimal online presence. The individual team members could be mere fabrications. The entire project could be a farce by utterly inexperienced characters. What if the project leaders are simply unaware of the importance of a strong social media profile? That in itself would be too strange to ignore. Top-level projects will have team members with experience in crypto and the LinkedIn accounts for those members will be easily accessible right there on the project website. You should be able to easily see and evaluate each individual’s experience in their field and ascertain what they bring to the project team. Bitconnect’s anonymous team should have been the only deterrent prospective investors needed to discourage them from putting money into that doomed project. Ethhorse, a current project with anonymous founders and operators should be steered clear of at all costs for the same reasons. Community Atmosphere The subreddits or Telegram groups of scam projects will often feature moderators that do not allow any kind of criticism in the group chat. If, in the process of your due diligence, you encounter didactic admins that only wish to silence your questioning of certain aspects of the whitepaper or mechanism of the tokenomics , you should be concerned. Similarly if you see a coherent critical reply attacked by many different users who refuse to engage the substance of the point being made, that may be a subreddit infested with bots. Projects that have nothing to hide will allow free debate in the chat. Ideally, they hope to develop a positive community that is itself an asset to the long-term success and overall strength of the project. Good projects do not need to automatically brand all criticism as Fear Uncertainty and Doubt (FUD). Whitepaper One common tactic of scammers is to produce a whitepaper that uses too many buzzwords, and deliberately obfuscates and overcomplicates the explanation of the problem and/or its solution. A good whitepaper clearly and concisely lays out the problem and answer, as well as provides compelling arguments why a Blockchain solution is preferable to the current solution. Another point of concern is a whitepaper that gives unrealistic time frames and goals. Bitconnect’s almost comically optimistic profit projections are a prime example of this, as are the 1,354% yearly gains promised by Plexcoin. Respectable projects will set out development timescales in terms of quarters or years, rather than offering immediate profit projections, which are simply a red flag. Advisors/Connections in the Cryptoworld The most prestigious projects will already have partnerships made before the ICO stage, and the worst ones, i.e. the scams, will not mention any such partnerships. Icon (ICX) for example was spawned from a South Korean project named The Loop, a collaboration between 3 Korean universities and the DAYLIFinancial Group. They boasted an advisory panel consisting of the legendary investor Don Tapscott, Jehan Chu and crowdfunding expert Jason Best. On top of a solid team of advisors, good projects will also be visible at major Blockchain events such as the Consensus, and the World Blockchain Forum, etc. Scam projects will be unable to inspire this same level in confidence. As an investor, you should sense a certain presence and expect a certain feeling of trust that should guide you in your investments. After all, it is actually a people-to-people thing you are doing. Key Stress points upon the Timeline to Identify Scam Projects Post Whitepaper Release The period in the immediate aftermath of the release of the whitepaper can also be decisive in establishing the validity of a project. How a team copes with the roadmap that they have laid out for themselves is key. Valuable insight into the operational efficiency and commitment to the project can be gleaned from the quality of and amount of code committed to GitHub. If you have any experience in computer programming you can see how clean and orderly the code is, which gives insight into the skill of the developers, and in turn the quality of project leaders’ decision-making in hiring team members. Scam projects will have little or no code committed to GitHub, or at best it will be copied and pasted from other projects just to cover their tracks. Start of ICO Sometimes, a scam project, or other project in which you would be better off not investing, will change the terms of the ICO just before the ICO starts. The Key (TKY) ICO doubled the price of tokens on the day before the ICO was due to take place, because the price of NEO had risen so drastically. Currently, the TKY token price is still only half of its ICO price. Initial investors are faced with the prospect of a 50% loss on their investment. Exchange Listing Some particularly greedy scammers will create a scam project with the intent of selling tokens in the ICO for BTC and ETH, and then pumping and dumping their share of the tokens immediately after listing. The team of fraudsters behind Monero Gold used this method after the crowdfunding of their useless ERC-20 token. After listing on CoinExchange.io, the team dumped their tokens until the exchange finally ceased trading. Although it is not uncommon for ICO tokens to sold after listing (just like can happen with shares of stock after an IPO), if the price does not stabilize and massive sell walls are continually placed, a scam is likely taking place and the token is being dumped. Fake Ethereum Twitter giveaway You may have noticed Ethereum creator Vitalik Buterin’s twitter handle has been changed to Vitalik “Not giving away Eth” Buterin in recent months. This is because a group of devious scammers had created fake accounts with almost exact replicas of his profile (deviating by only one character). The fake accounts promised to deposit 1 whole ETH for every 0.1 ETH the potential sucker deposited into the wallet address provided by the scammer. These fake account “Ether giveaway” scam tweets were set up to be sent in just a matter of seconds after the real person tweeted, and usually always appear immediately after the tweet of the real public figure. Fake bot profiles then came into play, thanking the fake Vitalik, or fake Elon Musk, for holding up their end of the bargain and depositing the ETH as promised. One scammer, or group of scammers, managed to fill a wallet up with almost $20 thousand worth of ETH, which they transferred out, never to be seen or heard from again. Effect of Scam Customers, Upon the Affected Parties Of course, this is no fun for the targeted public figure either. They need to take steps to avoid being targeted again. This will mean changing their handle, their username, or making their accounts private. However, the injured party with whom we are most concerned is the unfortunate scammed social media user, who has no chance whatsoever of getting his or her funds back, ever. It is a harsh lesson to learn. But it is a fact of crypto reality. Nearly every one that trades crypto will at least be exposed to frauds or scams in one way or another. In this case, we think it is better to learn about scams by studying them, rather than learn from your own unfortunate and expensive experience. In the case of Mr. Buterin, these incidents were awful public relations for the Ethereum project. It had only been a few years since cryptocurrency as a whole was primarily associated with criminality and seedy transactions on the Darkweb. Any connection with unscrupulous behavior is best avoided at all costs. Negative associations could have been particularly damaging for Ethereum’s brand because the vast majority of ICO fraud is committed using the ERC-20 token as the template for the scam tokens. Any and all the scamming or fraudulent behavior in the cryptocurrency ecosystem is bound to have a negative impact on the speed at which mainstream uptake finally takes place. Cryptocurrencies, as an emerging asset class, will be painted in the worst possible light. Crypto is aiming to, and is in fact in the process of, causing great disruption in traditional centralized finance and business. Mainstream media organizations are also part of that traditional centralized economy. Press coverage will be damning. Something is happening here, but Mr. Jones doesn’t know what it is. Legal Recourse for Scams We clearly understand, there is a possibility of being scammed. We know the scams are happening. The SEC has made some arrests and actually charged people for operating fraudulent ICOs. But it is a struggle to deal with the flood of ICOs coming from anywhere at any time. The SEC filed charges against two founders of a purported financial services startup for orchestrating a fraudulent ICO that raised more than $32million from thousands of investors. As you know from the ICOs we have covered so far, the lack of regulation allows for direct contact and dealing between the entrepreneurs, business owners and potential investors. While we believe this is a blessing according to the founding principles of Bitcoin and other alternate Cryptocurrencies, because it frees us from traditional roadblocks, middle-men, and all kinds of time-consuming procedures; it also leaves investors in a place where there is often little to no hope of ever recovering funds lost in fraudulent schemes. Actions after a Successful ICO Good post-ICO practice is characterized by stringent security, well thought-out legal strategy and clear communication. Many projects have paid the price in damage to their reputation for failing to adequately guard customer information, leaving themselves open to phishing attacks by fraudsters. Investors in the Enigma project had half a million dollars stolen from them; and a whopping $8.4 million was defrauded from investors in Veritaseum via phishing attacks. After a successful token distribution, the team’s main focus is initially on switching the enterprise from one primarily focused on fundraising, to superficially at least, a fully-fledged, functioning business. This involves removing most of the token sale-related content from their main webpage, sending newsletters to all successful ICO participants, and sending refunds to those who may have missed the deadline or the hardcap. Then, with the stressful and complicated fundraising stage finally concluded, a portion of the funds raised can be assigned to fuel the growth of the project community. This can involve hiring community managers, forum admins, and social media managers to outsource the job of keeping investors in the loop. The founders can focus on growth strategy and product development. The cultivation of a thriving and energetic community is extremely important. The community will give you free marketing for your product and your business. Community members who believe in the project, and are engaged by professional moderators, can give you very effective promotion to other prospective investors. Communication with community members is a great way to test ideas and gauge sentiment related to various aspects of your project. The project leads must set aside adequate funds for lawyers. The project will need to address potential future or imminent problems with regulators, at the very least. The transition from fundraising project to full-fledged business can be incredibly challenging, and even more stressful than the ICO itself. The main thing to remember is that your pre-sale and ICO investors are not just silent investors waiting for a return. They are the early adopters of your solution, of your product; they are the community and promoters of your project; and they are the individuals with a vested interest in the financial success of your venture. The ICO environment is not as heavily regulated, so quarterly and/or semi-annual reporting is not required the way it is in the traditional world. That means your own style of effective communication about the progress and key developments on your project matters even more. In the ICO world, you communicate with your press releases, social media, and Medium posts. You also communicate by the very nature of your relations with your exchange, and relationships with your cornerstone investors. Effective communication and good business relationships can play a prominent role in the success or failure of your venture (by token liquidity and valuation). If your investors start to lose interest, and stop trading your token on the exchange, liquidity will dry up and cause increasingly volatile price swings. You need to keep certain things in mind, and follow effective practices to maintain a happy and motivated community. Social Media & Medium In addition to your website, your social media & Medium blog most likely formed a significant part of your ICO preparations. Your purpose pivots after the ICO from one of promotion to one of communication. Consistent, informative and material Medium blogs, also Facebook and Twitter updates, ensure that investors remain engaged and well-informed of what the company is up to. Frequent activity in this space makes investors feel much more comfortable. You can foster a kind of organic community expansion that is consistently advertising your project to potential new members. Cornerstone Investors & Exchanges As we mentioned, your relationship with investors in the ICO world is different from that of the traditional silent IPO minority equity partners. Consistent, Transparent & Honest communication is incredibly important here. Even if an ICO is struggling to overcome a problem or whatever issues are occurring, honest communication from the team is key to business survival. You should think of and treat your exchange like a business partner too, a very important one at that. Exchanges provide liquidity for you and your investors. That liquidity is like the blood for your business. Many top exchanges demand nothing less than absolute honesty and integrity, it is imperative to maintain strong and comfortable relationships with exchanges. Everything we have said so far, also applies to your Telegram channel and forums too. These give you another great opportunity to build a thriving community. Team members and investors can enjoy lively debates in their Telegram channels. This can be constructive discussion, or critical commentary too. But it is always valuable as a direct link between the team and the community. It is always good to know how people are feeling and what they expect from you and your project. You are able to use your Telegram channel and forums to consistently adapt your marketing and communication strategy. Keep your investors as happy and comfortable as possible, and you will be more likely to attract new investors and allocations. Other forums around the internet operate more or less in the same manner as Telegram. After a successful funding round with the hardcap reached and time to spare, legal counsel has been secured, and the community is flourishing, the team will prepare for their first listing by paying the exchange fee and waiting for the announcement by the exchange. Unless they are willing to pay exorbitant fees for an immediate listing on Binance for example, teams will usually settle for an initial listing on a second-tier exchange. The fee charged by an exchange depends on many different factors that we will cover in more detail in the next section. ICO Company actions after a Successful ICO Real World Case Study The Basic Attention Token (BAT) project, when used in conjunction with the Brave Browser, allows users to pay micro-fees in BAT to their most-used sites. The idea was conceived by Brendan Eich, the inventor of Javascipt and former CEO of Mozilla Firefox. Investors absolutely pounced on it at ICO and the project raised an amazing $35million in under 30 seconds. The BAT/Brave project has delivered on time on nearly all of its targets, helped in no small part by having a working product, the Brave Browser, for over a year before the token launch. The project secured a listing on the premier exchange, Binance, in November 2017. A project can suffer through a disappointing funding phase and, for example, fail to reach 75% of its hardcap. The team will be only partially funded. Though they may be able to initiate the project, the value proposition of the token has been compromised, potentially forever. The market has spoken. There is limited faith in the team’s ability to complete or carry out their project. Failure to reach a hardcap is a serious obstacle on the project road map. This will mean massive revisions to the timescales for development and listing. Such a project may have to be content listing on decentralized exchanges for a period of time and they will lose any post-ICO hype that could have helped the project price to “moon” early on. There is less money to be allocated. Each section of the business will be underfunded compared to the original plan. There can be delays in code development, exchange listing, marketing and community development as well. Calling the Tezos ICO a disappointment might seem strange considering they raised over $232million. But this open-source, smart contracts fintech platform became a victim of its own success post-ICO by devolving into multiple class-action lawsuits between the founders and its foundation chairman. They suffered from a distinct lack of clearly defined roles and expectations on key positions. There was infighting at the boardroom level. This all caused an as yet unresolved delay in listing and development. This is also one example why a capped ICO can be more desirable for investors than an uncapped ICO. If the team have a set amount of capital to work with, an amount that isn’t absolutely ridiculous, like in the case of Tezos, perhaps the resultant greed and discord is less likely. Although it may not be so easy for speculative investors to make a profit from an uncapped ICO with such a massive initial market cap, it is a very impressive feat of fundraising nonetheless. Tezos’s post ICO market cap of $232million is already 64th of all projects, and would have to perform brilliantly on listing to maintain this position. Company actions after a Failed ICO Failed ICOs can mean either fundraising initiatives that have failed to reach the softcap and will therefore not be economically viable, or fraudulent projects whose sole intention was to steal from investors and do an exit scam. We’ve already covered scams and fraud projects in detail, but what happens when an ICO just fails to raise the requisite funds? Projects that are legitimate, with honest founders and developers, refund the ETH or BTC deposited by investors as quickly as possible if the softcap is not reached. The same process that is followed by ICOs that are oversubscribed is employed by those that have failed to raise enough capital. The process of returning funds back to the sender ideally should take a period of days, but more likely will take a few weeks. The Sappy Network, advised by Dan Tapscott, failed to come anywhere near to their funding goals. They are currently in the process of sending all investor funds back to the wallets from which they came. The statement from the founders read as a textbook example of how you should react to failure with the founder stating “In the spirit of transparency and honesty, we are sharing with the community that we did not reach the soft cap, and thus we will be honoring our terms and conditions and returning the Ethers to all contributors” Exchange Listing A bottleneck developed in the ICO market after the explosion of crypto prices in 2017. There was a massive increase of ICO teams on all stages along the pathway from start-up to fully listed crypto asset. Certainly, a huge part of the value proposition for both the token and the project depends on securing a listing on an exchange. It is precisely the liquidity of the token as a valuable asset on a free market exchange, that determines or even defines its value. The liquidity is what makes tokens attractive to investors, but that liquidity simply does not exist without a platform for the exchange. Unfortunately for new projects, the balance of power is heavily weighted in favor of large centralized exchanges that can pick and choose which tokens to list, and the timescale within which listing will occur. Each large exchange has its own list of pros and cons as well as its own specific procedure for coin/token listing. They also have their own particular ethos regarding the type of projects they prefer to list. ERC-20 tokens will be available for trade immediately on decentralized exchanges (IDEX Forkdelta) but those platforms are generally quite low volume, and certainly not a long term solution. Projects must often pay huge fees to be listed on the larger centralized exchanges. At first those fees will be prohibitive. The usual route is to initially list on a more reasonably priced smaller exchange like Kucoin or Gate.io. Listing Process Major centralized exchanges have the power to list anything they want, and they also each have a unique structure that projects must adhere to if they wish to be listed. Each potential new listing will undergo a rigorous examination by the exchange operators to test the feasibility for listing the token. An exchange will likely have forms available on its website that you can fill out to give them all the necessary initial information. If a particular project and token qualify for listing, the team will invariably be put under a NDA, Non-Disclosure Agreement, to avoid any insider trading or other regulatory problem s. In the case of larger exchanges like Binance, there is a period within which owners of a newly listed coin or token can transfer them to the exchange in preparation for trading. This is a fantastic opportunity for traders to make use of the likely pump that occurs after a new token is listed on a large exchange. It is common to see up to 100% increases on the first day of trading, and a subsequent dump of up to 50% or more can follow. This allows traders holding the coin already, to sell for a good profit, and maybe buy back in at a much lower price too, if they think that is a good idea. Exchange Fees There are no definitive figures available to the public regarding fees that major exchanges charge new projects to list. Binance, Bitfinex, Kraken and Bittrex have all been quoted as saying that they do not charge any fee at all but this is almost definitely untrue. Knowledgeable industry insiders estimate between $500,000 and $1,000,000 USD for listing on a top-tier exchange. (There have been more rumors of 7 figure exchange listing fees since January 2018 too). This figure will vary greatly from project to project. Various factors can affect how an exchange determines the fee for a particular project. These are some of the most important ones: Market Maker Service Required Whether or not the client project requires liquidity services directly from the exchange, or can connect proprietary ones via API, will lead to a huge reduction in listing cost. Type of Token (ERC-20 NEP-5 or DAG) Not all tokens are created equal in the listing process. ERC-20 tokens and BTC based tokens have code architecture that will almost certainly be preferred by the exchange. NEO based tokens (NEP-5) such as Ontology will be far most costly to integrate because separate new wallets have to be built to facilitate NEO transactions. The costs involved in integrating Direct Acyclic Graph projects such as Nano into the exchange structure are even worse. Expected Daily Volume Exchanges derive their profits largely from transaction fees and withdrawal fees. The trading volume a new token is likely to bring in will have a great influence on the computation of the exchange listing fee. Exchange Listing Procedures Evaluation Different exchanges have different rules for new listings. A new project must of course abide by specific rules for that exchange before they are allowed to list there. There are procedures that must generally be followed for the most noteworthy exchanges. You can get a good idea of the hurdles to be overcome before listing can take place. Ongoing relationship with Exchanges Exchanges, usually Huobi or Kucoin, will sometimes make it essential for newly listed tokens to engage in “trading competitions” after listing. Competitions can last between 2 weeks, or a month or more, aiming to increase the trading volume for that token, thereby increasing trading fees collected by the exchange, and giving the project extra publicity too. The whales may have made a nice profit already and be very happy about it; but the project token can still get stuck in a long period of stagnation and a loss of post-ICO hype. Once a coin or token has been successfully registered for trading on a particular exchange, the project must focus on maintaining regulatory compliance and paying things like annual maintenance fees too. Exchanges can investigate and delist coins or tokens to see if they have fallen below a certain standard set by the exchange. The exchange is concerned about such things as: an extended period with an extremely low volume; a team member connection to an exit scam; or other such immoral/illegal behavior. Post ICO Company Evaluation After a presumably successful ICO, the necessary funds have been obtained, and the real business, the real team challenge is now, to bring the project to life as a bona fide disruptive Blockchain endeavor! The core advantage of the ICO method of funding business startups is the lack of regulatory hurdles to navigate with regards to fundraising and fund allocation. The funds that have been raised have, in effect, been freely given to the project leads to do with what they will in a no-strings-attached transaction. Of course, there are still strings attached in that the team are tasked with making that money grow for the investors. But there is no regulatory oversight of the process. The regulatory freedom is a double edge sword. It gives a good team freedom to work however they want; and it also allows for unscrupulous thieves to use the ICO process to defraud investors of their ETH and BTC. Advantages of being Post ICO From Investor Perspective You should have little to fear in terms of fraud from a project in which you have invested, if you have done your due diligence correctly. You can expect the tokens to be distributed, and the exchange listing to take place as expected. And you know your project is totally legitimate. There are different ways to think about your ICO tokens after the crowd sale has concluded. If you are a speculative investor looking for a quick flip, you can gauge the correct moment and sell anytime you like, assuming the ICO has been well-received by the markets. From Team Perspective The post-ICO period is, from the point of view of the team, a period where stress and responsibility for the safety of investor funds is passed, in the form of ICO tokens, from the team to the investors themselves. This responsibility for tokens is replaced with the stress of building the actual company itself, and succeeding in the business as planned. A small portion of the responsibility for the project’s success is also passed on to the exchange that has listed the tokens. This is especially true if market makers have been employed by the team or the exchange to provide liquidity. After the ICO has concluded, all funds are released to the project team immediately, so they can start building their business brand, and tackling each step on the road map right away. The freedom with which startups can operate is one of the main reasons behind the explosion in Blockchain businesses in 2017. With the ICO funds safe, and money being put to work on various areas essential to the growth of the project, and the tokens already distributed to investors, the risk of fraud is greatly diminished. If KYC and Anti-money Laundering procedures have been followed correctly during the ICO phase, the risk of phishing attacks and theft will also be marginal now. At any rate, with tokens safely delivered to all participants, the responsibility has passed from the team to the investor. From Team Perspective The release of all funds and the freedom to allocate them with no supervision, as cited above, is certainly a tremendous advantage empowering the team to fulfil the entire breadth of their vision unimpeded. But it does have its drawbacks. If there is a mistake made in the allocation of funds, or an unforeseen problem arises, there is nowhere to turn to, and no means of generating further money via crowdfunding. The ICO is over; it is finished. The project simply has to work with what it has. Your community can sometimes turn against you when the market is going down. Times like that just add to the already intense pressure of presiding over a startup Blockchain business. Solution: DAICO The DAICO, or Decentralized Autonomous Organization Initial Coin Offering, is a means to integrate a more specific, rigorous and regimented smart contract schedule into the ICO process. Doing so will eliminate fraudulent ICOs, exit scams, pump and dumps, and many of the other disadvantages listed above. The DAICO method, proposed by Ethereum creator, Vitalik Buterin, will merge the core concepts of both an ICO and a DAO to leverage the most relevant features of both, in order to solve the main problems in the ICO method. For example, to eliminate the risk of an exit scam, the release of funds will be spread out over a period of time, with the next allotment only being released when a certain set of parameters are met. Buterin explains that the DAICO method will provide user protection in a manner not present in the current ICO model, ensuring funds are not misspent or used in any way contrary to the intention of investors. In simpler terms the DAICO will operate as follows: The DAICO will start with a smart contract by its executors that can set whether this is to be a capped or uncapped round of fundraising (amongst many other options) as well as including KYC requirements. After these settings have been configured, the DAICO is set into “contribution mode” and presented to the public. This stage will function identically to a normal ICO with ETH exchanged for project tokens. Once the funding period has elapsed, or the hardcap has been met, investors will have the ability to set the “tap” for the collected funds. This will set the amount per second, or amount per minute, that will be available to the executor to develop that specific portion of the project to which those funds have been assigned. If investors believe at any point that the team is misspending funds or otherwise wasting time, etc., the investors have significant options to take. Of course they could choose to release more funds to the team. But, they could also stop the tap altogether, and stop the entire ICO, by voting, and actually release all unused funds back to their own wallets from which the investment had first been made! Learn more on how to market any ICO and STO, get better understanding of security token definition and learn what a scam project is! Follow the link to read the full article: UBAI.co Contact me via Facebook or LinkedIn to know more about our services: LinkedIn Facebook
UPDATE Since my first post I have done the following:
Registered and verified on Kraken for Bitcoin and Ethereum trading only. This account has been funded.
Registered and verified on Bittrex for altcoins of my choosing (looking primarily at Ripple, Dash, Zcash). This account has been funded.
Purchased a Trezor on Amazon for $114.90, which becomes available September 5th and arrives September 8th.
Set up Google Authenticator TOTP 2FA on iPhone for all activities on both exchanges, with a memorized "master key" for bypass and recovery. Looking into Yubico for more security.
No crypto purchases yet...not until the Trezor comes in.
Here's my current problem: Everyone loves to talk about their exchange of choice and the associated fees, but nobody can explain to me why there are so many exchanges, and how it is possible that the fees can vary so disparately. From 0.20% to 3.99%...explain how? And what about how long it takes to process a transaction? I'm making weekly buys as per my strategy (check out the updated post). No, I do not want to be registered on 6 different exchanges. I just want to make sure that I'm using an exchange that is secure, that will let me trade in the cryptos I'm interested in, that won't overcharge me for buys and wallet transfers, and that is "future-proof" in the sense that the exchanges are being kept up-to-date. Also, at some point I need to figure out how to transfer coins that are not soft-supported to my Trezor. For example, I'm reading that the Trezor Chrome plug-in does not support ETH trading, but if I use MyEtherWallet then I can still store ETH keys on the Trezor. May just buy a Ledger and a Keepkey for additional coverage and to keep it simpler. ORIGINAL Per an earlier post I made, I am ready to invest in crypto. Currently I am trying to decide on a hardware wallet and an exchange of choice. I want to be fully prepared in advance. Some things to know - STRATEGY $200/wk 18/mo hold 50% divestment Bitcoin, Litecoin, Ripple, Ethereum, Dash (diversified) NO day-trading NO ICOs WALLETS Probably Trezor, but Ledger looks cool, too NO software wallets NO paper wallets NO mobile transactions 100% desktop trading with 2FA Backup in my brain Home access to wallet only Storing wallet in fireproof safe. EXCHANGES Trying to decide between the following 3:
MISCELLANEOUS Took Econ 101 and 201 many years ago, so I basically don't know shit about investing. Bid vs Ask vs Short vs Margin...I'm clueless. I also need some sort of phone app to track market prices, similar to how the iPhone has it built-in for NASDAQ and such. I'm avoiding CoinBase and Polloniex like the plague. The negative experiences I have read about really turned me off, even though these are both popular exchanges, so please do not recommend them. I will not be exchanging between crypto pairs. My weekly buys are strictly fiat to crypto, and my 18 month divestment will be crypto to fiat. Did I miss anything? Please evaluate my approach. Rip me apart if you feel so inclined.
TRADING CRYPTOCURRENCIES, BitSeven.com It is not a swimming pool, but a shark tank. Learn here how to choose the right exchanges, how to analyze the charts and trading them. Day Trading is not for the faint-hearted so be sure to learn first, otherwise, you will surely lose money by doing it. We will show you how to read Buy/Sell walls, guide you to the best crypto signal groups, and explain how to trade cryptos with leverage on Bitseven. We will provide a Bitcoin price analysis from time to time and check centralized and decentralized Bitcoin exchanges for you.In the market, you have to develop your own strategies to find out if you are bullish or bearish on a coin or token. Trading cryptos is not the same as trading the common financial markets, as cryptocurrencies are still a young market. If you want to learn how to trade the crypto currency market, you need a good knowledge setup, which should contain fundamental analysis, as well as technical analysis like charting, price action, and trend analysis. Due to the high volatility, every transaction contains risk for your trading account - especially if you use financial instruments like leveraged or margin trading. While there are trading courses which can teach you to develop a trading plan and execute a strategy, you will have to work on your psychology as well.We are often trading a virtual currency against another one, so the outcome depends very much on the development of the Btc price and the total crypto market cap. If you want to learn to trade you will have to estimate your risk appetite first and consider then the trading platforms you want to use. As a day trader you can basically gain capital in two ways: BITCOIN LEVERAGED TRADING YOU CAN TRUST BitSEVEN | Bitcoin leveraged trade at 200x leverage maximum, 200% profit at 1% price raise Make a profit whether the bitcoin price rises or falls https://www.bitseven.com Binance,bitmex,FCoin,OKEx,Huobi,CoinBene,Upbit,Upbit,Bitfinex,BitForex,BigONE,Bibox,HitBTC,bithumb,GDAX,LBank,Quoine, BCEX,Bit-Z,Kraken,Coinsuper,Zaif,Bitstamp,Bittrex,SIMEX,IDCM,ABCC,RightBTC,Bitinka,Poloniex,CoinsBank,YoBit,Gemini, Exrates,EXMO,USD-X,coincheck,DragonEx,Livecoin,KuCoin,Coinone,LIQNET,Sistemkoin,BitOnBay,LATOKEN,xBTCe,BtcBox,CPDAX,
At 1PM EST (5:00PM UTC) on Tuesday October 25th we will being doing a panel hangout with the Winklevoss Brothers of Gemini about their exchange and product offering, Benjamin Small, PhD, Head of Market Structure will also join in on the discussion. I have included below some of the questions that will be asked and will update as I complete the Google document. Feel free to comment or add anything in particular you want me to ask them Link to Hangout: https://www.youtube.com/watch?v=XGPFaaMXiOU Gemini Hangout (Questions Outline) Let’s Talk about the ETF filing a bit Any reason for the change from NASDAQ to BATS? As far as the filings go where are we in the process. I know you can’t talk timing but can we talk about some of the comments from the response and the S1. What is State Streets role in this overall process ? Opening remarks to include that due to SEC regulations the Winklevoss are unable to comment on anything related to the ETF Company BackGround Mission statement, target customers, organizational structure, # of employees, VC capital, explain the reasoning to go the banking charter route versus individual state MSBs -- pros and cons of choosing this route Daily Auction What purpose does it serve ? What is your response to these comments from Phil Potter CSO of Bitfinex regarding the volume on the auction and structure Audio Clip #1 https://www.youtube.com/watch?v=L2XSJlccLPc&feature=youtu.be&t=15m52s Audio Clip #2 https://www.youtube.com/watch?v=L2XSJlccLPc&feature=youtu.be&t=20m18s Currently Gemini is sitting at roughly 1/5th of the other USD exchanges including Coinbase another domestic exchange -- this excludes the daily auction number http://imgur.com/a/Adsn0 -- exchange rankings Why have you chosen to include that auction volume in your overall exchange traded volume ? Does that in someway distort the amount of actual volume that occurs on exchange? http://imgur.com/a/acFoT -- Gemini volume pre and post auction introduction you could ask them about the fee structure on the auction. They say they give all auction trades maker fees, but that means that if you have worked your way down to rebates, you can self trade or collude to earn rebates. Also curious who is using the auction. They obvs can't give specific names, but just a customer profile would be nice. E.g. the otc desks, hnw individuals, etc Gemini UI UX Why do I have to full KYC to even see the trading UI ? Already deters me from signing up Leverage/Margin In order to compete in the global marketplace for bitcoin traders you are going to need margin/leverage -- what are the current hurdles for acquiring margin ? Kraken and Polo offer leverage why can’t Gemini ? Do you believe an exchange can be highly profitable without leverage ? Reversing of Trades What criteria is grounds for reversing a trade? Not to long ago there was a fat finger trade that moved the price to $2200 and you chose to reverse these trades how did this happen in the first place and why did you choose to reverse these trades https://www.reddit.com/Bitcoin/comments/3ss945/just_got_this_email_from_gemini_about_the_2200/ API a question i would ask are " 1.) why did they decide to limit FIX access to only that datacenter or approved vendors ? " cite btcchina as someone who has fix end points all over the world. they basically priced out your "smaller guys" who actually a high percentage of the volume on the other exchanges in doing so maybe they are only chasing those institutional traders.. and weve seen how that works in bitcoin.. the bodies of the rekt exchanges are piled high died from starvation oh.. they are also in NY4 equinix.. space is hugely expensive there because nyse,cboe,cme ,phlx and nasdaq are also in there tl;dr not for small shop or bitcoin traders. only insititional that willing to pay 20k a year in hosting ETH Ask them about their feelings on ETH post-DAO, post fork and in light of the recent hard fork to avoid the DDOS issue - do they still see it as being a major player in the crypto scene in the long term? Did they invest in the DAO? Future Products ? Expansion to Singapore, Hong Kong and the UK -- what makes you think you can compete in Asia with the chinese exchanges that have more development fire power and strong hold ? Do you think this is a worthwhile expenditure of resources based on realistic returns ? Will these markets allow you to offer margin or more exotic products ?
Introductory video In the past few weeks, interest in the online cryptocurrency called Bitcoin has increased dramatically, largely due to its rapidly rising price. While it is relatively simple to use once everything is understood, the initial set-up is admittedly daunting and fairly complex. Given that Bitcoin is remarkably useful as an online transaction tool, I hope to clear up some misunderstandings and outline how to quickly and safely start trading with Bitcoins. How do Bitcoins help me? Before explaining how to get started, I’ll briefly summarize why Bitcoin is so attractive for traders:
anonymous: don’t need to share your personal information to receive money
extremely low transaction fees: it is by far the cheapest way to send large sums of money instantly across borders
payments sent cannot be canceled, reversed, or charged back after they have been confirmed (takes a few minutes, verify by searching for your transaction at https://blockchain.info)
Bitcoins are deflationary: their value tends to increase over time (whether or not they are a wise investment can be debated, but so far price has risen on average over time)
Alright, cool. I’m on board. So what do I do now? If you’ve decided to buy Bitcoins, the first step is to choose a wallet. A number of options are available, each with their own advantages. I personally recommend blockchain.info’s wallet, since is easy to create and for the most part hassle-free, while also providing additional security and advanced use features. If you intend to store a large quantity of Bitcoins, however, it may not be ideal for you. If you live in the United States, Coinbase may be your best bet--though you'll need to provide personal information in order to fully utilize its features. Note that if you are buying a significant amount of Bitcoin, you should not use an online wallet: look into downloading a desktop wallet client to store your bitcoins. They are much more difficult to set up safely, but are the most secure storage method if the proper steps are taken. Now that I have a wallet, how do I buy Bitcoins? Unfortunately, here’s where things get a tad complicated, and many people shy away after experiencing difficulties. The primary reason why it is hard to buy is that it is almost impossible to buy Bitcoins using credit cards, PayPal, or any other method that can be charged back. In addition, nearly all exchanges and vendors require some form of identity verification prior to selling; depending on the website, this process may take up to several days. If you anticipate that you will need Bitcoins for a trade in the future, start buying them in advance! Below are a few of the more popular sites to buy Bitcoins internationally; please keep in mind that they all have different verification and funding processes, so you should research which one best meets your needs.
Bitfinex: arguably the best site for those with extensive market knowledge, given that it allows for margin trades and lending
Bitstamp: great site for trading, and usually has decent prices
Coinbase: fully verified accounts can purchase Bitcoins instantly (I believe this is only possible for US users)
Kraken: I am not sure how easy it is to use, but it should be one of the better European exchanges other than Bitstamp
Finally bought my Bitcoins! How do I spend them? Once you have your wallet set up, but you want to transfer your Bitcoins to another account, simply ask the other person for their Bitcoin Address (it should look like a string of random characters; here is mine, for example: 1GEKaHGoauYSoEHzGj3TRL9tFqrtNA9oUt). The Bitcoins should arrive in the new wallet immediately; as the seller, however, it is important to remember to check that the transaction was confirmed on Blockchain.info (a transaction that can still be reversed will say "Unconfirmed Transaction!" in red). Of course, use a middleman when buying or selling virtual items for Bitcoins. There is no dispute process: once you send the Bitcoins, they are gone. There is an escrow (middleman) service called BTCrow, which could be cool if someone wants to experiment with it, but I have personally never tried it, and cannot recommend it as I do not know how their dispute process works. Closing notes: There's quite a bit more information out there, and I highly recommend researching extensively before committing any money to something this new and potentially unstable.
We will be doing a Google Hangout w/ Jesse Powell of Kraken Bitcoin Exchange -- focusing on features, functionality & trader focused products -- the format will be a panel interview made of traders from TradingView, /bitcoinmarkets, & IRC When: THUR 11AM PDT (UTC -7) Event Page:https://plus.google.com/events/ci6b9p4lfdo6da33mdalnn1pl4g Youtube:http://www.youtube.com/watch?v=zoTvEsA970M Raw Google Document Notes/Questions: Background • GIve us your background Jesse and that of your Team leading into how you came to found Kraken • How many people work there ? • What is overall vision of Kraken ? Is it an exchange or a trading platform etc? • Do you have any VC or angel funding ? Sustainability of the business is a key component for traders as it cultivates a resource rich talent pool for future products and exchange functionality • Have they ever had any security breaches ? What was going on with the recent down time in withdrawals ? • What is your current security process or proof-of-reserves system ? Will this become more costly if you have more customers and hence more funds to protect? Trading Platform UI/UX: • Why are your fees so high ? 0.35% http://www.awesomescreenshot.com/image/309939/9f4858ec30183c20b329ca772bf0661e • $250,000 worth of monthly trade volume gets me to 0.20% flat rate fee structure on Kraken -- while that is starting taker fees for BFX & BFX has a maker fee that starts at 0.1% and scales down based on volume -- how do you expect to compete with that ? • Charts: only line charts? but the site is clean -- however I would suggest you just try and get on TradingView and utilize their suite rather than spend a tremendous of time and resources re-inventing the wheel • What kind of APIs are you offering for pulling data and pushing orders ? • XBT versus BTC -- the on-going debate sighs -- I realize XBT is the official designator but I still don’t like it. Exchange Ecosystem • You expressed that Kraken is looking to add margin ? explain the current product you are looking at implementing and the thought process of how this will be appealing to active retail traders like ourselves ? (I am not here to advise you as to what you are to do with your business but we are traders and our priority is active trader features over basic fiat to BTC exchange) • As far as competing in a global exchange space we still see a very defined trend of much of the BTC trading volume happening offshore -- how does Kraken from a strategic perspective look to tackle the fact that many offshore competitors have little to no KYC/AML and draw the lionshare of the trader ? http://www.awesomescreenshot.com/image/309865/d0697dea01962bc2701985c5d98b27d7 • What kind of referral system do you have in place or are looking to implement ? Flibbr USP (Unique Selling Point) Why do you think no one is using your platform right now ? If I’m on 20x futures with minimal fees why should I move to Kraken ? If I’m on bitfinex with better liquidity, why should I move to Kraken ? You guys have more expensive fees and worse liquidity, so whats the incentive. Where do you see your exchange, 6 months and 12 months from now ?
Q&A With CryptoFacilities CEO Timo Schlaefer: "I am not a fan of socialized loss systems at all, they tend to be intransparent and create systemic risks and conflicts of interest"
You can read it on the web here or below in full: BitcoinFuturesGuide: Many of our readers are completely new to derivatives and are not convinced that they need traditional lower (3-6x leverage) bitcoin futures. What would you tell a bitcoiner -- whether they're executives at a bitcoin company holding lots of bitcoin on their balance sheet, or they're a mid-sized holdier of 10-20 bitcoin -- about why they should use normal CryptoFacilities bitcoin futures? Timo Schlaefer: If you just want to invest in bitcoin, i.e. buy and hold, you won’t need derivatives. They are very useful however for frequent trading as fees are typically much lower than in regular spot trading. With futures you can also go short, i.e. profit from price declines. This also allows you to get rid of bitcoin risk that you may not actually want without selling your bitcoins. For instance, a bitcoin payment processor may need to hold a certain amount of bitcoins to run the business but may not want to have exposure to bitcoin. In this scenario, shorting a bitcoin Futures will remove this risk without selling the bitcoins. Futures also provide interesting trading and arbitrage opportunities. Typically, they trade somewhat away from the bitcoin “spot” price, and this price differential can be locked in to make a low-risk profit. There is also the opportunity to trade the differential between different Futures on the same platform or across different platforms, or between Futures and the spot price. BFG: The bitcoin community is buzzing about your collaboration with the world's largest derivatives provider CME Group to construct reference indices to bitcoin spot market. Can you tell us a bit more about this? TS: It is extremely exciting that a market leader such as the CME Group is taking an interest in bitcoin and we feel privileged to be working with them. Bitcoin is a pretty new asset class, and for this asset class to develop further we need reliable reference prices. Together with CME Group we are developing a methodology to provide a once-a-day reference rate that will be published at 4 p.m. London time, as well as a real-time index representing the current market price of bitcoin which will be published approximately once per second and is suitable for marking bitcoin-risky portfolios, executing intra-day bitcoin transactions and risk management. We aim at bringing together all the major source of bitcoin liquidity and combining them in a transparent, robust and replicable manner. The daily reference rate will additionally be overseen by a supervisory committee of leading market participants and industry experts. So we hope than everyone will have a vested interested in these reference rates and that they become a universally trusted and used source for the bitcoin price. BFG: Your new Turbo product has a Weekly and Biweekly contract offered where there's 50x max leverage. To an existing bitcoin speculator who uses OKCoin, BitMEX, CFD sites, or even Bitfinex and Kraken on margin trading -- what would you tell them about why they should be trading your Turbo futures contracts instead? TS: The order book of our front week Turbo generally provides a very good level of liquidity – in most market environments you should be able to buy or sell around 25 contracts (worth 25 bitcoins) 5 BPs away from the bid price. Our transaction fees are between 1 and 5 BPs, and we do not charge any fees for maintaining a position, which makes total fees very competitive. We also do not have socialized losses, so we will not see us seizing any of your equity in case your get stopped out. BFG: On other exchanges, people have experienced that when one marketmaker monopolizes liquidity provision, the spreads can make it difficult for people to trade profitably on short-term moves. This results in a CFD-like experience for traders, in practice. How confident can your clients be that the liquidity that we currently see in the orderbooks of CryptoFacilities futures contracts, which is quite healthy, will not disappear and leave large spreads to trap them when theres some volatility? TS: We currently have an average bid-spread spread of 8 to 10 BPs in the front week contracts of our Futures which we believe is very good. We have not observed the situation you describe and certainly would step in to prevent this from happening. BFG: You and your exchange have had a certain opinion about high leverage products in the past. Can you explain how your philosophy on this has changed now with the Turbo product. And if not, do you consider Turbo "true futures" given that there is such a 2% initial margin requirement (50x)? TS: Crypto Facilities offers regulated trading products that satisfy professional standards. The bitcoin world runs a little different than traditional finance, and we accommodate for that to the extend we think our products are still safe to trade. Our bitcoin Futures provides 6x leverage and has never experienced a credit event since it was launched 15 months ago. At the same time we recognize that there are market participants who seek higher leverage and are willing to tolerate a higher level of counterparty risk. For this use-case we have launched the Turbo Futures which provides 50x leverage. The Turbo does not in any way change the risk profile of your “regular” Futures trades as it sits in a completely independent margin account, so there are no cross-effects between both products. It also does not change the risk profile of Crypto Facilities as we are not a counterparty in the trades on our platform. Also, we have spent a lot of effort on developing mechanisms to prevent price manipulation and self-perpetuating price moves on our market. Price manipulation is a major issue in bitcoin, in particular in bitcoin derivatives and it is essential to protect market participants against it. BFG: BitMEX has recently made another strategic pivot in their product offerings by abandoning futures and collapsing them all into one "swap" product for each currency pair. Are there any plans or interest at CryptoFacilities in developing swaps or something similar that gives investors an ability to earn interest payments on their bitcoin rather than merely speculating on price and premium changes in futures? TS: We currently have no plans to offer this kind of product. The idea behind perpetual swaps is probably to simplify trading, but this comes at the expense of transparency and tractability. For instance, if you hold a swap for a certain time, you will not know in advance what your lending costs/profit are going to be since the interest rate changes continuously. With Futures there is no such issue as you lock in the price at the beginning of the trade, so you know what you get. BFG: New exchanges on the scene like Coinpit and CRIX are planning to offer futures with no socialized losses. You were one of the first to offer this product to bitcoin traders in early 2015. Do you think the socialized loss model is going to disappear over time when competing with termination products emerging like Turbo? TS: I am not a fan of socialized loss systems at all, they tend to be intransparent and create systemic risks and conflicts of interest. I would be very surprised if a regulator ever approved a socialized loss system. We believe that our termination system, which manages credit risk bilaterally between counterparties, is safer and easier to understand. I don’t think there will be a universal move away from socialized losses though. There is always going to be a need for more casual, unregulated speculation, and this system seems to work well enough for that in most cases. BFG: You recently announced a partnership with Ripple, to offer derivatives solutions for traders in that market. How broad is your vision for products on CryptoFacilities? Will it remain a bitcoin-only website? Or will other cryptocurrencies be depositable? And plans for fiat integration? TS: We like XRP [Altcoin Ripple's currency code] and think that it has some very useful and unique characteristics. What is currently lacking is the ability to trade XRP in a more versatile way, for instance to put on a short trade to hedge your exposure, and we are working on creating this market. We ultimately want to extend our product range to all major digital assets and permit deposits in various digital currencies and fiat. BFG: Former CFTC chairman Bart Chilton recently openly stated that regulations need to be more lax for crypto. There are currently no legal exchanges for Americans to trade bitcoin derivatives on. Bitstamp was able to achieve EU wide recognition as a normal (nonderivatives) exchange. CryptoFacilities has recently achieved FCA permission to offer the first regulated futures on bitcoin. How promising are such efforts at acquiring similar regulatory recognition in the US and EU? TS: It is exciting that we are now able to offer our bitcoin futures to retail and professional investors in the UK and other European countries in a manner that is compliant with FCA regulations. This is a global first and certainly a step towards a more mature market. The regulatory hurdles in the US for derivatives trading are high, in particular if retail investors are involved, and certainly difficult to overcome for a company with limited financial resources. Unless there is some softening of digital asset-specific regulations, I’d predict that the US market for digital asset derivatives remains effectively closed for new fintech companies.
boldninja All welcome @breitwoman (Kathleen) and @rawzeee (Ross) from Tezos.com - today they will answer any of your questions regarding their upcoming project breitwoman By way of introduction, I am Kathleen Breitman, the CEO of the company which created Tezos. I am tag teaming this with @rawzeee, who works for the Swiss Foundation which will be responsible for running the crowdsale later this month. Ross will handle crowdsale-specific questions. rawzeee Hello! Greetings from Zug! jamiec79 :wave: breitwoman Very jealous of Ross right now, Zug is gorgeous techbytes Welcome. rawzeee I saw a man playing an alphorn in front of UBS today. Most Swiss thing I could've imagined possible. arkvader Greetings from far far away.... tranzer Hi Tezos! I have 1st question, by the looks of it Tezos will be in OCaml right? Why did you decide on OCaml? Are there any advantages over other languages? mike Hi Kathleen and Ross, good to see you. moobox hello Tezos people breitwoman @tranzer great question. we wrote the protocol in OCaml. It was a confluence of a few things... Pragmatically, we found a great team with an emphasis on OCaml based in France and Arthur (CTO) is a French national so it was possible to work with them pretty seamlessly. On the technical side, OCaml is a great PL for writing code that can later be formally verified. Security and consistency of execution are two principles we tried to optimize for and OCaml lends itself well to those goals. See also section 1.4: https://tezos.com/static/papers/position_paper.pdf (edited) dr10 hello tezos breitwoman howdy all! dr10 How would you shortly & easy-to-understand sum-up the advantages of TEZOS to magazines and non-crypto people? tranzer What consensus system will you use? Like PoS or some hybrid? Will there be any rewards for signing blocks? breitwoman My TL;DR runs on two talking points -- Tezos is a new blockchain that aims to create a robust governance model by allowing token-holders to come to consensus on protocol upgrades but also preserve rules over time by using mathematical proofs. Unlike previous blockchains, it can deploy upgrades to the network in an elegant and seamless way. @tranzer we have our own POS algo. We have nominal inflation in the protocol to incentivize participation. dr10 So in easy words, Tezos is built to easily adapt to any technic innovations? breitwoman @dr10 yes, it was borne out of the first alt coin craze when everyone deployed a new token to instantiate even the most marginal improvement dr10 okay breitwoman Tezos wants to preserve network effects while keeping pace with innovation dr10 Your whitepaper has very tech-heavy language. So I'd like to ask questions that are stupid and simple. :smile: What are the three crypto-currencies that are most similar to yours and yet why is Tezos different? breitwoman Yeah, the position paper is more accessible dr10 yeah i've read them all breitwoman 1. Decred. Though they don't push automatic upgrades and they can't introspect on the protocol. 2. Dash. Though they also don't push automatic upgrades, can't introspect, and I think their funding model is a little backwards. 3. Ethereum has a lot of similar technical goals but no formal, on-chain governance model. We made our protocol with a bigger emphasis on formal verification and security. someonesomeone Hi guys! dr10 thank you! and hi someone :smile: In your position paper you state "Tezos truly aims to be the last cryptocurrency." No matter what innovations other protocols produce, it will be possible for Tezos stakeholders to adopt these innovations" - Can Tezos implement any future innovations within its code? Wether its a new programming code, artificial intelligence or implementing big data of anything? i wondered about that i am a no-coder so I dont grasp everything tranzer How much do you aim to raise in your ICO will there be any minimum or maximum? Will it be normal proportional auction or fixed price per token? breitwoman @dr10 obviously limitations to anything that a blockchain can do... it can't solve poverty or hunger, but we made the code with a very modular design that allows for a lot of flexibility someonesomeone @breitwoman do you plan on doing a smartbridge with Ark? Or any other partnerships with them? :wink: dr10 yeah but I am wondering about future innovations like artificial intelligence, if that can somehow be implemented. breitwoman @smartbridge good question. I like Ark but I'm not familiar enough with what they're up to... open to all sorts of things though! dr10 My theory is that these future innovations will be interconnected by cryptocurrency breitwoman @dr10 So, our CTO is a bona fide expert in AI and he doesn't think there are a lot of synergies with AI and blockchains dr10 What is block target time? What is transaction speed? How many confirmations are needed? Couldnt see that / find that... maybe I oversaw :smile: breitwoman but we'll keep our eyes peeled dr10 okay someonesomeone @breitwoman cool. Ark is doing a great job from what I can gather and I am pretty sure that I will also invest into your ICO, since your project also looks very interesting breitwoman @dr10 I think that's all referenced in the white paper, which was recently updated! soporificprose Can you answer Tanzer... I have same questions. breitwoman That's a good question for @rawzeee dr10 okay, maybe I oversaw. I have read them all. no problem In your Whitepaper you state "Bitcoin, Ethereum, Cryptonote, etc. can all be represented within Tezos by implementing the proper interface to the network layer." Does this mean you try to interconnect all those cryptocurrencies? (edited) breitwoman @dr10 we're targeting 1 minute between blocks. We haven't set a blocksize yet, but we'll her on the side of caution at first. It's better to raise the blocksize through the amendment mechanism once we are confident in the network's throughput. jakethepanda Will users be able to issue asset tokens and build on top of Tezos? breitwoman @dr10 no, that's more like Cosmos... a different but cool project dr10 ark is doing that too :smile: rawzeee There is no minimum or maximum, though if only a few million were raised stakeholders would be asked whether or not they wanted to offer another TGE (Token Generation Event) to newcomers. Fixed price of 1 BTC to 5000 XTZ (tezzies), plus a descending bonus from 20% to 0% in 5% intervals every 400 BTC blocks. The entire TGE lasts 2000 BTC blocks. tranzer How much do you aim to raise in your ICO will there be any minimum or maximum? Will it be normal proportional auction or fixed price per token? Posted in #trading_altcoinsToday at 7:12 PM dr10 I didnt find on that one, or didnt look too deep. What are the references of you and your team members? On what projects did you work before? breitwoman @jakethepanda yes, they will but we think it's a better idea to propose those features that you'd find in an appcoin as a first class citizen rawzeee Yes, was typing the answer up! It's posted now. soporificprose Can you answer Tanzer... I have same questions. Posted in #trading_altcoinsToday at 7:15 PM breitwoman @dr10 I'm a pretty open book... I've worked in finance at a hedge fund and a VC, then in consulting... Arthur worked in high frequency trading for many years at places like Goldman and Morgan. Our developers are very academic dachshund what type of role/influence do your initial investors (polychain, etc) have in the overall governance of the network, if any dr10 What is the Payment for ICO? Paying in ETH or BTC or any other and how much will one Token cost? breitwoman Technically, none. We sold a nominal amount of tokens to a large group of people. They have the same status as any other participant but got a slight discount over the crowdsale price for tying up their capital for several months. techbytes that include Tim Draper? breitwoman I solicit their advice a lot though... it's a really savvy bunch and I was a one-woman band on the operational side. raolin Hey Kathleen - has your team given anymore thought to the post ICO mission? Roadmap? Additional team expansion? soporificprose Are they restricted from selling for a certain length of time? breitwoman no @raolin check out our outline at the end of our presentation https://www.tezos.com/static/papers/Tezos_Overview.pdf tranzer How much was sold to those pre-ico funders? breitwoman All in here guys: https://www.tezos.com/static/papers/Tezos_Overview.pdf 612k at an avg 31% discount rawzeee I listed the BTC ratio above. It's 1 BTC for 5000 XTZ (tezzies) plus a bonus or lack thereof based upon time periods. If you choose to use fiat Bitcoin Suisse AG who is administering the TGE (check their rates and your jurisdiction) they will peg it to BTC. Ether is pegged to BTC and will be accepted at the median (from Poloniex, Kraken, and GDAX) of the last three trade prices utilizing the ETH/BTC pair before the timestamp of the Ethereum block at the time of contribution. It’ll be offered on a best-effort basis and for convenience. If you want certainty contribute with Bitcoin. Otherwise you accept the risk that the exchange rate you'll get may not be precisely what you see on the screen at the moment of your contribution. You may also use other coins via ShapeShift. (edited) dr10 you will hit poloniex, kraken and gdax? when? rawzeee That is referring to the peg of ETH to BTC. all XTZ are pegged to the BTC price for the TGE. dr10 ah ok rawzeee I'm an acronym storm over here! dr10 Is there already some plan or future business relationship with merchants, exchanges or anything that Tezos could be used as a payment method? Anything you want to share already? dachshund What were your considerations when deciding to make the ICO un-capped? Any concerns regarding the impact there could be on the price once this starts trading (i.e. no price discovery) breitwoman @dr10 we've been talking to two exchanges for several months. I'm pretty confident Tezos won't have trouble on that front. I have two partnerships in the works that I'm excited about but shouldn't discuss yet. soporificprose Curious whether pre-ICO investors paid with BTC or fiat? breitwoman @dachshund it's primarily about fairness and distribution. ryano Are you familiar with BOScoin? They once were also using ocaml not sure if they stuck with that. Any comments on the benefits relative to each other breitwoman @soporificprose fiat dr10 Can everyone that holds a Tezos token vote on a proposal? Do they have to pay or temporaily lock in the Tokens? How does it work? It sounds like everyone can vote directly, right? ryano Also i thought Tezos was using delegate proof of stake is this no longer or never was the case ? breitwoman @ryano that's news to me. I have not gotten a straight answer from them on any technical questions rawzeee The reasoning for the uncapped TGE here is that the platform is almost entirely done (not an ICO for a white paper) and it is desired that a robust network is built rather than a few fast fingers buying up the entire TGE in minutes or hours. This is particularly important given how governance will work on Tezos. breitwoman @ryano we are using delegated proof of stake, @dr10 that means you can delegate your responsibilities to someone else if you don't want to be an active participant dr10 I see What is the Prediction Market about that you want to implement regarding "Futarchy"? I didnt get that right away mike Tezos form of DPoS looks very similar to proxy voting, like Liquid Democracy. breitwoman @mike yes, it is good catch soporificprose So their 30% discount was based on the price of BTC at that point? That would make it a much bigger actual discount yo current BTC to 5,000 TZE breitwoman @soporificprose pardon? no, it was all denominated in dollars the sale is denominated in BTC mike I want to add that to Ark at some point as well. dr10 What is the practical advantage to decentralized, atomated upgrades - compared to lets say Litecoin's Segwit Process? breitwoman @dr10 yeah I'd read this piece from Robin Hanson first http://mason.gmu.edu/~rhanson/futarchy.html ... but basically you'd run a predicition market with a prompt like "What do you think would be the best feature for Tezos" with many choices and whatever gets the popular vote would be implemented. dr10 And this predicting/voting will happen inside the wallet? mike ryano has some very interesting ideas on ranked voting. Have you looked into ways to combine ranked with proxy voting? breitwoman @dr10 we think defaults matter. upgrading protocols is cumbersome in existing blockchain implementations and it causes stasis tranzer Is wallet and whole network already developed (since you said platform is ready) ? sibars @rawzeee Sorry newbie question: Can you please explain in details how the TGE will work on day one?... I download the wallet fist, send you my BTC and then you send me the Tezzies? breitwoman @mike not closely. we think our first implementation, a straight vanilla two phased vote, is too simplistic. I'd like to discuss more sophisticated mechanisms if you've thought them through! I know Arthur loves him some futarchy but I'm not as big of a fan mike that would be a great discussion, look forward to exploring voting systems with you. we plan to try them on bridged chains which can be run as experiments. breitwoman @mike that's awesome dr10 xD Tezos focusses also on faster smart contracts as I understood, right? breitwoman @dr10 more secure, not necessarily faster dr10 okay breitwoman our smart contract language, Michelson, was created with formal verification in mind mike That named after the Michelson of Michelson-Morley Interferometer? (edited) dr10 And it uses ZeroCash as privacy mechanism? Or the whitepaper only compared to it and you use something different? I couldnt identify that breitwoman @mike you got it! https://en.wikipedia.org/wiki/Albert_A._Michelson Wikipedia Albert A. Michelson Albert Abraham Michelson (surname pronunciation anglicized as "Michael-son", December 19, 1852 – May 9, 1931) was an American physicist known for his work on the measurement of the speed of light and especially for the Michelson–Morley experiment. In 1907 he received the Nobel Prize in Physics. He became the first American to receive the Nobel Prize in sciences. (177kB) dachshund is there something similar to "gas" in tezos that controls for computation of each program, or how do you get around that? rawzeee @sibars No worries at all. There is a dedicated TGE site (register for updates at www.tezos.com). It'll guide you through the process. You'll generate a paper wallet (easy click through) with seed words. You can save it to a drive and/or print it (probably most secure). You'll verify your wallet number and password you created to generate it, then make your purchase to your wallet #. You can then verify it and make sure it's reflected in the wallet. It'll be simple and easy with a nice interface. breitwoman @dr10 not yet but Zooko is an advisor and we have spoken about integration. we are more interested in STARKs, the next gen of zero-knowledge dr10 I see breitwoman @dachshund yes, we have the concept of gas as well dr10 I guess you already answered that: In your Whitepaper you say: Crypto-currencies suffer from the same fate as smartphones which are incompatible with one another; they derive their value from a network effect, or the number of users who have given it value. - ARK will connect all Crypto-currencies by SMARTBRIDGING. Can you imagine working with ARK Smartbridge in your protocol aswell? yeah you did :smile: sibars @rawzeee Thanks :) dr10 More secure Smart Contracts, automatic upgrades in a DPoS model. Any other main focusses or any other attributes you want to innovate or improve compared to other cryptos? tranzer So will Tezos offer assets on their blockchain like ethereum? breitwoman @dr10 well, I think that covers the main talking @tranzer we can, but we think it's more powerful to integrate at the protocol level dachshund how has traction been within the developer community? I imagine there isn't a limitless pool of developers with the required technical expertise, so you must be expecting to take away from other networks? mike This is a good overview as well, for those who haven't seen it, https://tezos.com/static/papers/Tezos_Overview.pdf (edited) geops This all sounds great. The only thing that bothers me is the 1min block time. That seems like a step back compared to modern blockchains. Any goals to improve that? breitwoman @dachshund we have a very powerful core team. we think our choice of programming language was a good magnet and filter effects. we haven't sourced from other blockchain communities @geops yeah, that's all pretty flexible tranzer What is your budgeting plan if you get like 20m how long will that be for? 5 years? More? geops If you look at integrating with ARK smartbridge tech, you'll sure get lots of investors from here :slightly_smiling_face: breitwoman @tranzer we go over this a bit in our recent presentation: https://tezos.com/static/papers/Tezos_Overview.pdf check out the second to last page tranzer Yeah I'd like to see that as well geops, @fixcrypt is amazing developer from what I have seen so far breitwoman @geops yeah, totally something we should explore. we're a small team so any partnerships or serious integration have been tabled for later But I like the idea of ARK and I like what I've seen... so very open to this! tranzer Must say I like what I'm hearing here will definately invest a few btc dr10 yes me too geops definitely good ideas breitwoman Cool, glad to hear it! dr10 I think the future of blockchains will be in partnerships too tranzer dr10 I think so as well that is why I invested in ARK in first place too much competiting and too little cooperation (in other projects) (edited) rawzeee Hooray! Happy y'all may participate in the TGE. geops maybe you guys should sit down with @mike and @fixcrypt and discuss possible future collaborations. (edited) mike Yes, I like the vision laid out by Andreas Antonopolis of many thousands or more of specialized tokens and chains for different applications. tranzer OK so last question from me that 20% bonus will be for entire 400 first BTC blocks when you start? jacob breitwoman: Quadratic voting might work for Tezos (http://ericposner.com/quadratic-voting/) ERIC POSNER Quadratic voting Glen Weyl has uploaded a new version of his paper, Quadratic Voting (written with Steven Lalley), to SSRN, which now includes the completed proofs. Quadratic voting is the most important idea for l… Dec 30th, 2014 at 3:57 PM breitwoman good question for @rawzeee rawzeee @tranzer yes, indeed! breitwoman @jacob yes, that's something we've considered mike Glad to see you have Johann Gevers on board, is he active with the foundation? breitwoman we didn't want to be prescriptive with v1, so we made it very easy to understand rawzeee So there is about two days to get that bonus. Then 15% for the same period and so on. breitwoman @mike yes, he's the director. and he's awesome. total mensch and very philosophically committed to our project rawzeee I actually had a meeting with Johann today in Zug. mike Really like Monetas, glad to see there doing well, and the creation of the Zug crypto environment is fantastic. breitwoman @mike we went through a lot of ups and downs while developing Tezos. basically nobody cared about us for a while, until the DAO basically. Johann always encouraged us to keep going. yeah, the crypto valley is a brilliant concept rawzeee It's pretty magical. tranzer You living there? breitwoman @tranzer I'm US-based rawzeee I'm just here for awhile. Also US-based. nikandro Hi all, sorry if this has already been discussed, but have you spoken with any exchanges about adding Tezos? breitwoman @nikandro yes, but it's a pretty convoluted process one nice thing about tezos is that exchanges can act as delegates, which creates great incentives nikandro Do you expect to have any clarity on that prior to the ICO? tranzer How can exchanges act as delegates? breitwoman not sufficient to make an announcement but it's really not something I worry about techbytes really. Than perhaps Poloniex will add tezos. :slightly_smiling_face: breitwoman @tranzer you can assign your validation to an exchange's address nikandro While im interested in developing more than anything, I also understand that trading is a good tool for price discovery, which is critical. ryano You shouldn't have any trouble getting on an exchange and would be a low priority area to spend your energy while in development breitwoman they have to volunteer of course @nikandro of course, completely agree. Arthur was a market maker on Wall Street for 10 years he thinks about this... a lot @ryano that's what I've heard but people like to be assured that the token will have a marketplace, which is reasonable It does take a lot of energy and I've been lagging on that front Security and legal concerns were priority #1, we can iterate and grow the team pretty rapidly after the sale Having the Foundation build out and assume responsibilities for promoting the protocol will be much better than my one woman band :slightly_smiling_face: mike I'd expect Bittrex no problem. jakethepanda First alt-coin you bought? mike mastercoin nikandro Sorry to push the matter, but does this mean there will be no marketplace for Tezos after the ICO? breitwoman @nikandro apparently there will be a futures market running mike they can't announce if they did - exchanges have NDAs disallowing coins from announcing, leaving it up to the exchanges. djselery lol, even if they had an exchange lined up right now they probly couldnt talk about it nikandro @djselery , right, and I'm not asking for specifics, just wondering if implementation is in the pipeline. breitwoman @nikandro it is insofar as we have had many conversations/back and forth and its been very positive I can't say much else other than it's a cumbersome process nikandro Okay, thanks @breitwoman jakethepanda I'm sure Tezos will be on an exchange. I don't think that's even an issue. nikandro @jakethepanda I agree, I was just inquiring about the timeline and I think @breitwoman cleared that up. Many thanks. jakethepanda @breitwoman Pizza or Sushi? breitwoman @jakethepanda that's relative to location. In NY, I prefer pizza. Everywhere else, sushi :slightly_smiling_face: rawzeee^ good answer. jakethepanda Tesla or Mercedes? mward So @breitwoman 5000 TEZOS = 1 btc? and 20% discount for firat 400 btc raised dachshund will you be growing the team in NY, is mostly based in europe? nikandro For sure! In brooklyn, I do the dollar slice ride. Bike around to each vendor that sells dollar slices. yay, pizza! breitwoman To drive? Mercedes. Tesla's still don't have the handle I like :slightly_smiling_face: @dachshund they're based in Europe, primarily but I don't have any plans to leave the US sibars by the way, who designed the Tezos logo? rawzeee @mward no. 400 is the BTC blocks mined for the first bonus period; it's a time thing. But the ratio you've cited is correct. And then the bonus rate decreases by 5% every 400 blocks until 2000 BTC blocks are mined. (edited) breitwoman It's a character we found by looking through some libraries. I think it's a TZ symbol from a language that uses that combination often mward @rawzeee when will it start? rawzeee Though not a discount. It's a bonus. May 22nd at 6am UTC. mward thank you breitwoman Hey guys, I have to hop on a call in a little. 2 more questions and I'll have to wrap this up! moobox I don't have a question but i wish your group bon chance or however the French say . tranzer So little women in here stay a little longer :sob: ryano Thanks for hanging out and answering questions! jakethepanda Thanks @breitwoman http://slack.tezos.com/ breitwoman @moobox vielen dank @tranzer haha, I'll be back! moobox salutes like Benny Hill rawzeee The subreddit is where a lot of discussion happens too: https://reddit.com/tezos reddit tezos.com • tezos reddit: the front page of the internet techbytes Great AMA session. Thanks for stopping by and answering all the questions. Good luck on the project and I look forward to investing. breitwoman @ryano thanks for having me! and the very cordial convo boldninja @breitwoman thank you for taking the time for this AMA - I was just lurking, but all what I would ask was answered. I wish you all the best with ICO and I hope ARK and Tezos cooperate in the future. breitwoman Thanks guys! Yeah, feel free to bolster our Reddit mward Aurrevoir! dr10 thank you very much :smile: rawzeee Yes, thanks much everyone! So long! breitwoman @boldninja great to hear it! @dr10 thanks for the solid qs, really appreciate it dr10 np :smile: mike Thanks for stopping by, both of you, and taking the time to chat with us. look forward to participating in Tezos.
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